By Adam Starkey
Copyright metro
A historic deal (EA)
Electronic Arts has confirmed it is being acquired by a group of private investors, including the sovereign wealth fund of Saudi Arabia.
After reports emerged over the weekend of a potential buyout of EA, the company has now confirmed it will be acquired by a ‘consortium’ of investors.
The video game publisher, known for titles like EA Sports FC and Battlefield, has entered an agreement to be acquired by PIF (Public Investment Fund), Silver Lake, and Affinity Partners, in a deal which values EA at approximately $55 billion (£40.9 billion).
These investors will acquire 100% of the company as part of the deal. The PIF, the sovereign wealth fund of Saudi Arabia, already had a 9.9% stake in the company, so this will be rolled over, while other current EA stockholders will receive $210 per share in cash.
Silver Lake is a US private equity firm based in Silicon Valley, while Affinity Partners is a US-based investment firm founded by Donald Trump’s son-in-law, Jared Kushner, in 2021. The latter primarily invests in American and Israeli companies, with the majority of its funding stemming from the Saudi Arabian government.
The deal has been approved by EA’s board of directors, and is expected to close in Q1 of the 2027 financial year (i.e. between April and June next year) pending some ‘customary closing conditions’.
Most notably, this deal will take EA private after 36 years as a publicly traded company, so all of its public shares will no longer be traded on any stock exchange.
Andrew Wilson, who has been CEO of EA since 2013, will continue to run the company after the deal goes through, which is described as the largest leveraged buyout in history.
Speaking about the deal, Wilson 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.
‘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.’
The deal represents Saudi Arabia’s growing investment into the gaming space, following its purchase of Pokémon Go developer Niantic earlier this year, and its interest in esports with events like the Esports World Cup.
The PIF is controlled by the country’s prince Mohammed bin Salman, whose government has been accused of numerous human rights violations.
EA Sports FC 26 launched last week (EA)
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