Prime Highlights:
- Electronic Arts (EA) will go private in a $55 billion all-cash acquisition led by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners.
- EA shareholders will receive $210 per share, giving them a premium above the company’s recent stock price.
Key Facts:
- The deal will be the largest leveraged buyout in Wall Street history.
- PIF, already holding a 9.9% stake, will become the majority investor once the transaction is finalized.
Key Background:
Electronic Arts (EA), the gaming company known for titles like Battlefield, The Sims, and Madden NFL, will go private in a $55 billion acquisition. The all-cash deal is being led by Saudi Arabia’s Public Investment Fund (PIF) with support from Silver Lake and Affinity Partners.
Under the terms of the agreement, EA shareholders will receive $210 per share in cash. The company’s stock rose 4.5% on Monday following the announcement, after gaining 15% last Friday when reports of the deal surfaced. This deal is the largest leveraged buyout in Wall Street history and shows the rising flow of global money into gaming.
PIF, which already owns 9.9% of EA, will become the main investor once the deal is completed. Analysts noted that this acquisition represents the most significant move yet by PIF’s gaming arm, Savvy Gaming, which has previously invested in major publishers and acquired companies such as ESL, FACEIT, and Scopely.
Affinity Partners’ CEO Jared Kushner described EA as a company with a “bold vision for the future,” adding that he has long admired its ability to deliver iconic gaming experiences. The investor group will contribute $36 billion in equity alongside $20 billion in debt financing from JPMorgan, according to details provided with the announcement.
EA CEO Andrew Wilson assured employees that he will continue in his role, emphasizing that the new investors share confidence in the company’s people, leadership, and long-term strategy. “Our new partners bring deep experience across sports, gaming, and entertainment,” Wilson wrote in a note to staff.
The deal is expected to close in the first quarter of fiscal 2027, but EA has 45 days to review other offers. Talks about the agreement began earlier this year.
This major buyout will not only shape EA’s future but also show the growing global race to invest in the booming gaming industry.
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