EA Goes Private in $55 Billion Deal with PIF, Silver Lake, and Affinity Partners

What's Happening?

Electronic Arts (EA) has agreed to be acquired by an investor group consisting of Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity Partners in a transaction valued at approximately $55 billion. This marks the largest all-cash sponsor take-private investment in history. Under the terms of the agreement, EA stockholders will receive $210 per share in cash, representing a 25% premium to EA's unaffected share price. Following the transaction, EA's common stock will no longer be listed on any public market, and Andrew Wilson will remain as CEO. The deal is expected to close in Q1 FY27, subject to regulatory and stockholder approvals.

Why It's Important?

The acquisition of EA by PIF, Silver Lake, and Affinity Partners is significant as it represents a major shift in the ownership structure of one of the world's leading video game companies. The involvement of Saudi Arabia's PIF highlights the country's strategic move to diversify its investments beyond oil, aligning with Saudi Vision 2030. For EA, the deal provides an opportunity to continue pushing the boundaries of entertainment, sports, and technology under private ownership. The transaction could lead to transformative experiences for gamers and potentially impact the development and release of future EA titles.

What's Next?

Following the acquisition, EA will continue to operate under the leadership of Andrew Wilson and remain headquartered in Redwood City, California. The transaction is expected to close in the first quarter of fiscal year 2027, pending regulatory and stockholder approvals. EA's focus will likely remain on delivering innovative gaming experiences and expanding its portfolio of iconic IPs. The investor group, including Affinity Partners founded by Jared Kushner, may influence EA's strategic direction and investment priorities in the coming years.