American video game company Electronic Arts (EA), the studio behind Madden NFL, Battlefield, and The Sims, has confirmed its eye-watering $55 billion buyout. The agreement constitutes the largest private-equity buyout in history. In a new press release, the brand confirmed it had been “acquired by an investor consortium (‘the Consortium’) comprised of PIF, Silver Lake, and Affinity Partners in an all-cash transaction that values EA at an enterprise value of approximately $55 billion. The transaction positions EA to accelerate innovation and growth to build the future of entertainment.”
Investors involved include tech management company Silver Lake, Saudi Arabia’s Public Investment Fund (PIF), and Affinity Partners, run by President Donald Trump’s son-in-law, Jared Kushner. Saudi Arabia’s PIF (already EA’s largest insider stakeholder) and other members of the “Consortium” will pay existing stockholders around $210 per share. The deal is expected to close in the first quarter of 2027 and will take the brand private, meaning public shares will be acquired and will no longer be traded via a stock exchange. Per the Associated Press, such moves can lead brands to “undergo extensive cost-cutting that includes layoffs.”
EA’s headquarters will remain in California, and CEO Andrew Wilson will retain his role. “I am more energized than ever about the future we are building,” Wilson said in EA’s press release. Per the New York Times, however, the buyout still awaits “the approval of the Committee on Foreign Investment in the United States, a panel of government agencies that reviews international deals for security concerns.” The deal also still awaits approval from EA shareholders.
“PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators,” said Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF. “PIF has demonstrated a strong commitment to these sectors, and this partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale.”
“Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future. I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games - and now enjoys them with his kids – I couldn’t be more excited about what’s ahead,” said Kushner.
The acquisition is in line with other PIF investments; the group also holds sizable stakes in Nintendo, Activision Blizzard, and Capcom, among others. Earlier this year, Saudi-owned mobile game brand Scopely acquired Pokémon GO maker Niantic’s gaming division for more than $3 billion. Scopely, a subsidiary of Saudi-owned industry investment company Savvy Games Group since 2023, was established in 2021 by Saudi Arabia’s PIF.
Gamers, as well as government and industry experts, have expressed concerns regarding the acquisition. The PIF is helmed by Prince Mohammed bin Salman, a leader accused of myriad human rights violations. In 2019, the United Nations (UN) released a report saying “the state of the Kingdom of Saudi Arabia is responsible” for the death of journalist and vocal government critic, Jamal Khashoggi. Saudi Arabia denies involvement.
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