Electronics Arts to go private after $55 billion acqusition is confirmed

Electronic Arts

Electronic Arts, one of the world’s biggest names in gaming, is set to go private in a blockbuster $55 billion acquisition. The company announced that it has reached a definitive agreement to be bought out by a consortium led by Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners.

Under the terms, the group will acquire 100% of EA’s shares, with PIF rolling over its existing 9.9% stake. Shareholders will receive $210 per share in cash, a 25% premium over EA’s September 25 closing price of $168.32, and well above its record high of $179.01 from August. The deal marks the largest all-cash sponsor take-private investment in history, underscoring the value placed on EA’s portfolio of hit franchises like FIFA, Madden, and The Sims.

The investor group brings global reach across gaming, sports, and entertainment. That network, EA says, will allow it to accelerate growth, blend physical and digital fan experiences, and scale new opportunities worldwide.

EA CEO Andrew Wilson framed the move as both recognition of the company’s achievements and a springboard for the future. “Our teams have built iconic IP and extraordinary experiences for hundreds of millions of fans,” Wilson said. “Together with our partners, we will create transformative experiences to inspire generations to come.”

The market reaction to the news has been immediate. Following the report, EA’s stock price surged by 15 per cent on Friday afternoon, reflecting investor optimism that the acquisition could unlock new strategic opportunities for the company. Analysts have noted that such a transaction could allow EA to operate privately, providing management with greater flexibility to invest in long-term projects and emerging technologies without the pressures of public market scrutiny.

For the gaming community, the acquisition could have mixed implications. On one hand, private ownership may allow EA to innovate and invest in new game titles and services more freely. On the other hand, concerns remain that the influence of private equity could lead to changes in development priorities or monetisation strategies that may affect how games are produced and marketed in the future.