Video gamer EA to go private in largest-ever private equity buyout valued at $55 billion

an end to Electronic Arts 36-year history as a publicly traded company at $210 a share, putting a $55 billion price on what would be the largest leverage buyout in history. This moment is a powerful recognition of EA’s remarkable work. Together with our partners, we will create transformative experiences to inspire generations to come. The video gaming giant is well known for its popular franchises like the formerly FIFA affiliated football games, Madden NFL, The Sims, and Firstperson shooter Battlefield. EA’s annual revenues have hovered around 7.5 billion for the last three fiscal years. But despite the slowdown in the video game sector since the end of the CO 19 pandemic, its property’s longevity make it an attractive opportunity for the consortium of private equity firms behind the deal. They include Silverlake, a firm part of the joint venture that’s to assume oversight of the Tik Tok video applications operations in the United States, Affinity Partners, a company run by Donald Trump’s son-in-law Jared Kushner, and Saudi Arabia’s public investment fund. It already holds a 9.9% stake in EA as the kingdom seeks to diversify away from oil revenue and pour billions into everything from infrastructure to tourism, sports, and gaming. PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators. The deal is expected to close in the first quarter of 2027, though will first require approval from EA’s shareholders and regulatory authorities.

Electronic Arts, the maker of video games like “Madden NFL,” “Battlefield,” and “The Sims,” is being acquired by an investor group including Saudi Arabia’s sovereign wealth fund in the largest private equity-funded buyout in history. The investors, who also include a firm managed by Jared Kushner, President Donald Trump’s son-in-law, and the private equity firm Silver Lake Partners, valued the deal $55 billion. Story by Luke Shrago.
#gaming #EA #tech

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4 comments

  2. Never thought to look at the people behind ea becoming a worthless publisher. This makes lots of sense now. They can burn for all I care

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