Video game giant Electronic Arts is set to go private in a $55 billion deal.
Confirming earlier reports, the deal — which ranks as the biggest ever leveraged buyout — involves a group of investors including private-equity firms Silver Lake, Saudi Arabia’s Public Investment Fund and Jared Kushner’s Affinity Partners. The total figure is higher than the previous reports of $50 billion, which were based on EA’s current market value.
The buyout is expected to close by June 2026, which is the end of the first quarter of EA’s 2027 fiscal year. Upon completion, EA will remain headquartered in Redwood City, California and continue to be led by Andrew Wilson as CEO.
“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work,” Wilson said in a statement Monday. “Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.”
EA’s current biggest priority is the upcoming wide release of “Battlefield 6” on Oct. 10, but its catalog of game franchises also includes “Skate” (with its latest game having entered early access this month), “EA Sports FC” (rebranded from “FIFA”), “Apex Legends,” “The Sims,” “EA Sports,” “Madden NFL,” “EA Sports College Football,” “Need for Speed,” “Dragon Age,” “Titanfall,” “Plants vs. Zombies” and “EA Sports F1,” among others.
The deal will be funded by a combination of cash from each of PIF, Silver Lake, and Affinity Partners as well as roll-over of PIF’s existing stake in EA, constituting an equity investment of approximately $36 billion, and $20 billion of debt financing fully and solely committed by JPMorgan Chase Bank, N.A., $18 billion of which is expected to be funded at close. Each of PIF, Silver Lake, and Affinity Partners plan to fund the equity component of the financing entirely from capital under their respective control.
Under the deal, EA shareholders will receive $210 per share in cash, representing a premium of 25% as of the company’s closing share price on Sept. 25 before reports of a deal emerged.
“PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators,” said Turqi Alnowaiser, deputy governor and head of international investments at PIF. “PIF has demonstrated a strong commitment to these sectors, and this partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale.”
Added Kushner: “Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future. I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games - and now enjoys them with his kids – I couldn’t be more excited about what’s ahead.”
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