EA to be Acquired in Record $55 Billion Deal
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Electronic Arts, in a press release, announced that they have agreed to be acquired for $55 billion by an investor group that includes Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity Partners.
The deal is expected to close in 2027. Once complete, EA will no longer be a public company — it will be privately owned by the group.
Here’s what the acting CEO of EA has to say about the acquisition:
“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. 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.”
EA’s Board of Directors Lead Independent Director Luis A. Ubinas also has this to say about the the deal:
“The Board carefully evaluated this opportunity and concluded it delivers compelling value for stockholders and is in the best interests of all stakeholders. We are pleased that this transaction delivers immediate and certain cash value to our stockholders while strengthening EA’s ability to continue building the communities and experiences that define the future of entertainment.”
EA’s headquarters will remain in Redwood City, California, with CEO Andrew Wilson continuing to lead the company.
Unlike Microsoft’s $69 billion purchase of Activision Blizzard, which was one company absorbing another, this is a leveraged buyout, the largest in history. EA will stay an independent entity, but its new owners will have the power to make major decisions about its future.
Here’s what the future owners have to say about the deal.
“This investment embodies Silver Lake’s mission to partner with exceptional management teams at the highest quality companies.” saysEgon Durban, Co-CEO and Managing Partner of Silver Lake. “EA is a special company: a global leader in interactive entertainment, anchored by its premier sports franchise, with accelerating revenue growth and strong and scaling free cash flow. We are honored to invest and partner with Andrew—an extraordinary CEO who has doubled revenue, nearly tripled EBITDA, and driven a fivefold increase in market cap during his tenure. The future for EA is bright, we are going to invest heavily to grow the business and we are excited to support Andrew and the EA team as the company accelerates innovation, expands its reach worldwide, and continues to deliver incredible experiences to players and fans across generations.”
For players, nothing will change immediately while the acquisition process unfolds. But long-term, the group’s influence could shape everything from EA’s franchises to its overall strategy. Whether that’s good or bad remains to be seen, but I expect EA’s impressive lineup of sports games to go through major changes, as well as their approach to esports.
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