Deal Reached

Electronic Arts agreed to be taken private in a $55B deal, the largest buyout of a publicly traded company in history.

Context

Electronic Arts has published some of the most popular video games since the early 1980s, including The Sims, Madden NFL, and the FIFA soccer franchise, now known as EA Sports FC. The company has been led by its current CEO, Andrew Wilson, since 2013, during which time he doubled revenue and increased the company's market value fivefold. Before the deal discussions became public, EA’s stock had underperformed the broader market over the past five years.

Record-Breaking Deal

Electronic Arts agreed to go private in a $55B acquisition deal assembled by Jared Kushner’s Affinity Partners and Silver Lake, with Saudi Arabia’s sovereign wealth fund providing the majority of funding.

Investors agreed to pay stockholders $210 per share in cash, a 25% premium to the stock price before news of the deal leaked. The transaction would be financed through $36B in equity contributions from the investor group and a $20B loan from JPMorgan Chase. 

Saudi Gaming

Saudi Arabia’s Public Investment Fund, which already owned 9.9% of EA, led the acquisition as part of its broader strategy to diversify investments away from oil. The Kingdom has committed $38B to gaming investments through its Savvy Games Group and hosted the Esports World Cup with $70M in prize money.

The fund has also invested in other gaming companies, including Nintendo and Take-Two Interactive, and recently acquired mobile game makers Scopely, which made Monopoly Go!, and Niantic's video game division, which made Pokémon Go.

AI and Future

The investors believe artificial intelligence could significantly reduce EA’s operating costs and boost profits in the coming years. They expect AI to accelerate game development by automating tasks like creating backdrops, replacing voice actors, and testing for bugs. The technology could also enable more personalized gaming experiences by adapting storylines to players’ preferences. The deal requires approval from the Committee on Foreign Investment in the US and is expected to close in 2026, with EA remaining based in California under the current CEO.