Electronic Arts (EA), the powerhouse behind blockbuster video game franchises like Battlefield, FIFA, and The Sims, has entered into a definitive agreement to be acquired in a monumental $55 billion leveraged buyout, one of the largest take-private deals ever recorded. The acquiring consortium, comprising private equity giant Silver Lake, Saudi Arabia’s Public Investment Fund (PIF), and Jared Kushner’s Affinity Partners, will take full ownership of EA in an all-cash transaction, as reported by Bloomberg. This move underscores investor confidence in EA’s enduring portfolio despite a prolonged slump in the gaming industry.
Under the terms of the deal, EA shareholders will receive $210 per share, representing a 25 percent premium over the company’s closing share price of $168.32 on September 25, and surpassing its all-time high of $179.01 on August 14. The transaction, expected to close in the first quarter of fiscal year 2027, will be funded through a combination of cash from the consortium and a rollover of PIF’s existing 9.9 percent stake in EA. A $1 billion termination fee applies to EA if it reverses course or accepts a superior offer, with the consortium facing the same penalty if regulatory delays push the deal past September 28, 2026.
The acquisition comes at a pivotal moment for EA, as the gaming industry grapples with cautious consumer spending and a shift toward proven, recognisable titles. EA is banking on its robust sports portfolio and upcoming releases like Battlefield 6 to maintain its market dominance.
Andrew Wilson, EA’s Chairman and CEO, hailed the deal as "a powerful recognition of [our teams’] remarkable work," emphasising that the partnership will "create transformative experiences to inspire generations to come." The consortium’s deep expertise in gaming, entertainment, and sports, coupled with their global networks, positions EA for significant growth and innovation.
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