Electronic Arts Acquired in $55 billion Deal
Electronic Arts (EA) has entered into a definitive agreement to be acquired by a consortium of investors led by the Public Investment Fund (PIF) of Saudi Arabia,Silver Lake,adn Affinity partners in a transaction valued at approximately $55 billion. This all-cash deal will take the video game publisher private, removing it from public stock markets.
The agreement will see the investor group acquire 100% of EA, with PIF converting its existing 9.9% stake. EA shareholders are set to receive $210 per share in cash, representing a 25% premium over the September 25, 2023 closing price and exceeding the company’s past high of $179.01 recorded on August 14, 2023. Trading of EA stock will cease upon completion of the deal.
Andrew Wilson will remain as CEO and continue in his role as president, with EA maintaining its headquarters in Redwood City, California. The transaction is expected to close in the first quarter of fiscal year 2027, pending regulatory approvals and shareholder consent.
financing for the acquisition will consist of roughly $36 billion in equity contributed by the three investing firms, and $20 billion in debt financing arranged through JPMorgan Chase, with $18 billion of the debt expected to be drawn at closing.
affinity Partners, founded in 2021 by Jared Kushner, son-in-law of the U.S. President, will become an EA shareholder as part of the agreement.
The announcement arrives as EA prepares for the launch of battlefield 6, and following the release of EA Sports FC 26 and Skate. The company also has several projects in growth, including a new mass Effect game from BioWare, the third installment in the Star Wars Jedi series by Respawn, and Iron Man from Motive. The future of other EA franchises currently on hold will now be persistent under new ownership.
