Record $52.5 Billion Buyout Takes EA Private in Gaming’s Largest Deal

Electronic Arts is being acquired in a landmark deal. A consortium led by private equity firms will purchase the gaming giant for $52.5 billion. The deal was announced Monday and will end EA’s run as a public company.

This acquisition is set to become the largest private equity buyout on record. It highlights the immense value and growth potential seen in the video game industry by major financial players.

Key Players Behind the Massive EA Acquisition

The buying group includes Silver Lake Partners, Affinity Partners, and Saudi Arabia’s Public Investment Fund (PIF). They will pay $210 per share to EA stockholders. According to Reuters, the total enterprise value reaches $55 billion when including debt.

This price shatters the previous private equity record. The 2007 TXU utility buyout was valued at $32 billion.

Affinity Partners is led by Jared Kushner. PIF was already EA’s largest insider stakeholder and will roll over its existing 9.9% investment. The fund has been aggressively expanding its gaming portfolio through its Savvy Gaming Group arm.

Strategic Shift for a Gaming Icon

Going private allows EA to restructure away from Wall Street’s constant scrutiny. The company’s annual revenue has been stagnant for three years. CEO Andrew Wilson will remain in his role after the transition.

This move provides operational flexibility. The company can now focus on long-term projects without quarterly pressure from public markets.

Some analysts question if the sale price is fair. The Benchmark Company suggested EA’s true value may be higher given its strong pipeline, including the upcoming “Battlefield 6.” Shareholders must still approve the transaction, which is expected to close in fiscal 2027.

This record-breaking EA buyout signals a new era of major financial investment in the video game sector. The industry’s evolution continues to attract unprecedented capital.

Thought you’d like to know

Who is buying Electronic Arts?

The buying consortium is led by Silver Lake Partners, Affinity Partners, and Saudi Arabia’s Public Investment Fund. Together, they are financing the $52.5 billion acquisition.

What does this mean for EA game development?

CEO Andrew Wilson will stay on to lead the company. The move to private ownership is intended to give the company more flexibility to focus on long-term projects and innovation.

How does this deal compare to other gaming acquisitions?

While massive, this deal is smaller than Microsoft’s $69 billion purchase of Activision Blizzard. However, it sets a new record for a private equity-led buyout in any industry.

Will EA games continue to be released on all platforms?

There has been no indication of platform exclusivity. The new owners are expected to continue EA’s multi-platform strategy to maximize revenue and player engagement.

Why is Saudi Arabia’s PIF involved?

The Saudi sovereign wealth fund has been actively investing in the global gaming market since 2022. It views the sector as a key part of its broader economic diversification strategy.