Gaming giant Electronic Arts acquired for $55bn
Electronic Arts has accepted a $55 billion acquisition offer, marking it one of the largest take-private deals ever reported.
The consortium behind the purchase of one of the world’s best known gaming companies includes Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Jared Kushner’s Affinity Partners.
SEE ALSO: Best Mobile Games to Download Right Now (2025 Edition)
The acquisition deepens Saudi Arabia’s involvement in the gaming sector. In March its Public Investment Fund paid $3.5 billion for Niantic’s games division, which gave it control of Pokémon Go.
Under the agreement, EA’s public shares will be acquired, meaning it will no longer trade publicly. The offer values the company at $210 per share -- roughly a 25 percent premium over its market price.
EA is best known for some of the world’s most popular game franchises. Over more than four decades the gaming giant has dominated the market.
Its football titles have sold more than 325 million units since 1993, The Sims series has racked up over 200 million sales, and Need for Speed more than 150 million.
Andrew Wilson, EA’s current chief executive, will stay in charge after the transaction. He said, “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.“
Discussing the future, he added, "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.”
“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.”
Electronic Arts debt
As part of the transaction, the buying group will contribute about $36 billion in equity, with the remainder funded by borrowed capital.
This structure places a large financing burden on EA itself. Observers say that the deal could saddle the company with up to $20 billion in new debt.
Christopher Dring told the BBC: “EA has been open to a potential buyer to help level up for a while. But an acquisition from private equity is a surprise and there’s a lot of industry anxiety around this deal.”
He noted that “the revenue generated by big games like EA Sports FC, Madden and Battlefield 6 will be needed to service this debt, which may impact EA’s ability to invest in new games.”
What do you think about EA’s $55 billion sale? Let us know in the comments.
Image Credit: Ricochet69 / Dreamstime.com