Location: HOMELatest Game IssuesElectronic Arts to Go Private in Historic $55 Billion Acquisition Deal

Electronic Arts to Go Private in Historic $55 Billion Acquisition Deal

2025-09-29 22:38:15

In a monumental shift for the gaming industry, Electronic Arts has officially announced that it will be acquired by a powerful investor consortium for approximately $55 billion. The buying group consists of Silver Lake, Affinity Partners, and Saudi Arabia's Public Investment Fund (PIF), who will collectively purchase 100% of EA's outstanding shares. Following the completion of this transaction, Electronic Arts will cease to be publicly traded on the stock market.

Battlefield

Established in 1982, Electronic Arts has grown into one of the most influential publishers in the global gaming landscape. The company initially went public in 1989 with a market valuation of approximately $84 million, representing a fraction of its current worth. However, recent performance challenges have impacted the company, with EA experiencing a significant $6 billion decline in shareholder value earlier this year following disappointing sales of major titles including EA Sports FC 25 and Dragon Age: The Veilguard.

Under the terms of the acquisition agreement, Electronic Arts stockholders will receive $210 in cash for each share they hold, representing a substantial 25% premium over the company's closing share price of $168.32 on September 25, 2025. Despite the change in ownership structure, Andrew Wilson will continue to serve as Chief Executive Officer, and the company will maintain its headquarters in Redwood City, California. Wilson described the acquisition as a "powerful recognition" of Electronic Arts' achievements in developing "some of the world's most iconic intellectual properties." The transaction is anticipated to finalize during the first quarter of fiscal year 2027, pending regulatory approvals.

EA Sports FC 26

This promotional image from EA Sports FC 26 captures German goalkeeper Manuel Neuer attempting to stop a shot headed for the upper left corner of the goal during a simulated match between Bayern Munich and Juventus, showcasing the game's innovative in-goal camera perspective.

The investor consortium bringing Electronic Arts private comprises significant players in global finance. Silver Lake represents a prominent private equity firm from Silicon Valley that was established in 1999. Affinity Partners, founded in 2021 by Jared Kushner, former White House advisor and son-in-law to Donald Trump, operates from Miami and maintains substantial financial backing from the Saudi Arabian government. Completing the trio is Saudi Arabia's Public Investment Fund, the sovereign wealth fund of the Middle Eastern nation that has increasingly focused on video game industry investments, including becoming Nintendo's largest shareholder in 2023.

Dragon Age: The Veilguard

Should regulatory authorities in the United States grant approval, this acquisition will rank among the largest transactions in video game history. However, Microsoft's $68.7 billion purchase of Activision Blizzard will maintain its position as the industry's biggest deal. The gaming community widely anticipates that this ownership transition will yield positive outcomes for players, though the specific changes that may emerge from this transformation at one of the world's premier gaming publishers remain uncertain.

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