Maya Robertson
Electronic Arts, the publisher behind major titles such as Madden NFL, The Sims, and Battlefield, is set to be taken private in a $55 billion leveraged buyout, marking the largest transaction of its kind in history.
The deal will see a consortium made up of private equity firm Silver Lake Partners, Saudi Arabia’s Public Investment Fund (PIF), and Affinity Partners, an investment firm founded by Jared Kushner, acquire all outstanding EA shares for $210 each in cash. The price represents a 25% premium over EA’s unaffected share price on September 25, 2025.
If completed, the acquisition will end EA’s 36-year run as a publicly traded company. The Redwood City–based publisher went public in 1989, with shares debuting at just over 50 cents after adjusting for stock splits.
The $55 billion valuation surpasses the $32 billion takeover of TXU Energy in 2007, previously the largest leveraged buyout. According to transaction details, approximately $36 billion will come from equity investments provided by the consortium, while JPMorgan Chase is backing $20 billion in debt financing, $18 billion of which is expected to be funded at closing.
The deal is anticipated to close in the first quarter of fiscal 2027, pending shareholder approval and regulatory review. Following completion, EA’s stock will be delisted, and the company will continue operating under CEO Andrew Wilson.
The transaction highlights ongoing consolidation in the gaming industry, coming just two years after Microsoft’s $69 billion acquisition of Activision Blizzard. Analysts note that investors are betting on the long-term resilience of blockbuster gaming franchises despite recent turbulence in the sector.
EA’s annual revenues have remained relatively flat in recent years, hovering between $7.4 billion and $7.6 billion, even as competitors pushed into new markets. The company has also faced internal challenges, including multiple rounds of layoffs and the cancellation of projects such as new Titanfall and Black Panther titles.
Nevertheless, EA continues to lean on its sports franchises and major shooter series as consistent revenue drivers, with Battlefield 6 scheduled for release in October 2025.
EA’s board has unanimously approved the buyout, describing it as delivering “compelling value” for shareholders. However, the deal contains strict conditions: EA could owe a $1 billion breakup fee if it reverses course, accepts a higher bid, or pursues another merger within a year of shareholder rejection. The consortium would owe a similar fee if regulatory hurdles prevent closure by late 2026.
Upon completion, EA will remain headquartered in Redwood City, California. The company employs roughly 14,500 people, following a workforce reduction of about 5% in 2024 and additional layoffs earlier in 2025.
The acquisition further underscores PIF’s growing role in the global gaming and entertainment sectors. The Saudi fund already holds stakes in publishers such as Nintendo, Take-Two Interactive, and Capcom. Silver Lake brings a track record of large-scale technology investments, having previously taken companies like Dell and Skype private.
Affinity Partners’ involvement adds a political dimension to the transaction, as its founder, Jared Kushner, is a former White House advisor and the son-in-law of former U.S. President Donald Trump.
If approved, the buyout would mark a turning point for one of the gaming industry’s most recognizable publishers. Going private is expected to give EA more flexibility to restructure and invest without the pressures of quarterly earnings, though it could also lead to cost-cutting measures.
For now, EA is preparing for the upcoming launch of Battlefield 6, while investors and regulators review the details of what could become a landmark moment in the history of gaming and global dealmaking.
Comments
Loading…