It’s official: EA is selling to private equity in $55 billion deal

In a significant development for the gaming industry, Electronic Arts (EA) has confirmed its plans to go private in a monumental deal valued at approximately $55 billion. Announced on Monday, this acquisition involves a consortium consisting of Silver Lake, Saudi Arabia's Public Investment Fund (PIF), and Jared Kushner's Affinity Partners. This transaction marks a record as the largest all-cash private equity buyout in history. Under the terms of the agreement, EA shareholders will be compensated $210 per share, reflecting a 25 percent premium over the stock's closing price of $168.32 last Thursday. This premium offers a notable increase from EA's all-time high of $179 per share. Following the news, EA's stock surged, closing at $193.35 on Friday, and it continued to rise to around $203.50 in pre-market trading. Andrew Wilson, the CEO of EA, is set to remain at the helm after the deal is finalized, which is expected to occur in early 2027. In a message to employees, Wilson emphasized the importance of their contributions, stating, "This moment is a recognition of your creativity, your innovation, and your passion. You have built some of the world’s most iconic IP and have influenced culture through interactive experiences." The Saudi Arabian Public Investment Fund, which already held a 9.9 percent stake in EA's public shares, will integrate its existing investment into this leveraged buyout. The acquisition will be financed through approximately $36 billion in cash equity from the three partnering firms, alongside $20 billion in leveraged debt arranged by JPMorgan Chase Bank.