LOS ANGELES (TechGenez) – Video game giant Electronic Arts, maker of EA Sports FC, The Sims, Madden NFL, and Battlefield, has been taken private in a $55 billion deal.
The acquisition was led by Saudi Arabia’s Public Investment Fund (PIF) together with private equity firms Silver Lake Partners and Affinity Partners (run by Jared Kushnera- Donald Trump’s son-in-law). The deal closed on Tuesday after receiving final regulatory approval from the European Union.
The transaction ends EA’s 36-year history as a publicly traded company. EA stockholders will receive $210 cash for each share they owned.
Why the Deal Matters
EA is best known for its blockbuster sports games, including EA Sports FC (formerly FIFA). The company also develops other major titles such as The Sims, Apex Legends and Battlefield.
By taking EA private, the new owners plan to focus on long-term growth, innovation and investment in the company’s creative talent and game franchises. The deal is expected to be accretive to earnings and will allow the new owners to invest heavily in AI to enhance game development and player experiences.
Statements from the Parties
Andrew Wilson, Chairman and CEO of Electronic Arts, said:
“This moment recognizes the extraordinary people whose creativity, ambition and passion have made EA one of the world’s leading interactive entertainment companies. We’re entering this next chapter from a position of strength with partners who share our vision and ambition. Together, we’ll invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day.”
Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF, said:
“Having been a minority investor in the company for more than five years, we have a deep understanding of EA’s unique platform, massive global sports and gaming franchises, and iconic IP. Entertainment and sports are key areas of strategic focus for PIF, and are among the fastest growing and evolving sectors around the world. Together, the Consortium is uniquely positioned to be a long-term partner to EA’s management team in driving sustained growth and innovation for EA and the industry.”
Egon Durban, CEO and Managing Partner of Silver Lake, added:
“EA’s franchises are some of the most beloved in entertainment, combining exceptional creative talent with a relentless focus on players. We’re excited to support the company as it continues to reach new audiences, inspire the next generation of creators, and expand the ways people around the world connect through play.”
Jared Kushner, Chief Executive Officer of Affinity Partners, said:
“EA has created stories, characters, and communities that have become part of everyday life for hundreds of millions of people. We’re excited to support the company as it continues to reach new audiences, inspire the next generation of creators, and expand the ways people around the world connect through play.”
What Happens Next
EA’s common stock has ceased trading and will be delisted from the Nasdaq. The company is now a private company, giving the new owners the flexibility to make long-term investments without the pressure of quarterly earnings.
Advisors
Goldman Sachs served as EA’s financial advisor, and Wachtell, Lipton, Rosen & Katz was EA’s legal advisor. Kirkland & Ellis acted as legal counsel for the Consortium, with specialized teams from Gibson Dunn, White & Case, Latham & Watkins and Simpson Thacher representing the individual investors.
Conclusion
The $55 billion acquisition of Electronic Arts is one of the largest buyouts in gaming history. It reflects growing investor interest in the entertainment and sports sectors and gives EA’s talented team and millions of fans the chance to explore a new era of growth and innovation under the ownership of PIF, Silver Lake and Affinity Partners.
