Electronic Arts Acquired in $55 Billion Deal
REDWOOD CITY, CA – Electronic Arts Inc., the renowned video game developer behind franchises like FIFA, Battlefield, and The Sims, has been sold to a consortium of private investors in a transaction valued at $55 billion, Bloomberg reported today. The deal marks the largest leveraged buyout in the video game market to date.
Founded in 1982, Electronic Arts employs nearly 15,000 people and generates annual revenue of $7 billion, with profits exceeding $1 billion. The acquisition comes as the company prepares to launch its highly anticipated Battlefield 6 title, capitalizing on player loyalty to established gaming brands.
The purchasing consortium includes Silver Lake Management, the Public Investment Fund of Saudi Arabia, and Affinity Partners, the latter owned by Jared Kushner. They have agreed to pay $210 per share for the Redwood, California-based company, a 25% premium over its Friday closing price. Electronic Arts’ market capitalization currently stands at $43 billion, recovering from a low of $30 billion in January.
Analysts note the move to a private ownership structure will relieve Electronic Arts from the pressures of quarterly reporting and investor expectations. The company’s consistent revenue stream, particularly within the sports gaming sector, proved attractive to private equity firms.
The transaction, financed through a combination of equity and borrowed funds, is expected to be finalized in the first quarter of fiscal year 2027. Reuters reported the deal underscores investor confidence in the long-term value of successful game franchises as the industry rebounds from a period of decline.
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