Electronic Arts has announced today that its plans to go private have gone ahead. A consortium that includes Saudi Arabia's Public Investment Fund and Trump son-in-law Jared Kushner's Affinity Partners, alongside the private equity firm Silver Lake, has snapped up EA in a $55 billion deal (via Reuters).
"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," Andrew Wilson, chairman and CEO of Electronic Arts, says in an official news post. "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 energised than ever about the future we are building.”
As part of this deal, it's also been announced that EA shareholders will all get $210 per share in cash. This represents a premium of 25% of EA's closing share price on September 25, 2025, just before any reports of the deal were hinted at, as reports from The Wall Street Journal guessed that the deal could be anywhere around $50, not too far from the result.
The $55 billion deal also now cements EA as the biggest ever leveraged buyout, usurping the $45 billion buyout of Texas utility group TXU in 2007. For reference, a leveraged buyout is when a private equity firm uses a large amount of borrowed money to finalise the deal, with what is to be acquired used as collateral in the debt, effectively leaving the bought-out company liable for the debt. The company's future income will be used to repay the debt over a period of time. In this instance, $20 billion of the financing for the buyout comes via a loan from JPMorgan.
The news comes amid a string of successes for EA. Having just released a well-received FC 26 that delivers a huge overhaul to the core game mechanics, while also gearing up for perhaps the most anticipated FPS this year, Battlefield 6. It's no understatement to say that things are looking better for EA now than they have in a while.
Although this isn't to say that EA hasn't struggled in recent years. After losing its sought-after FIFA license, having a pretty underwhelming Dragon Age: The Veilguard launch earlier this year, followed by the downsizing of BioWare. We'll have to wait and see exactly how this buyout will affect EA and the games it publishes, and whether this will actually help developers ship better games or if this is just another way to whitewash the global image of the Saudi government: my hopes are not high.
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