Electronic Arts is going private after $55B bid

Video game developer Electronic Arts (EA) has announced that it’s being acquired for $55 billion. A consortium of investment companies will take full control of EA. The acquisition is still subject to approval by shareholders and relevant authorities.

The consortium is composed of Saudi Arabia’s Public Investment Fund (PIF), Jared Kushner’s Affinity Partners, and private equity firm Silver Lake. They will fund the transaction with a combination of $36 billion in cash, along with the existing 9.9% equity held by PIF, as well as $20 billion in debt financed by JPMorgen.

“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work,” Andrew Wilson, Chairman and CEO of Electronic Arts, says in a public statement.

“Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building,” he continues.

“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,” Jared Kushner, CEO of Affinity Partners, adds.

If the acquisition is approved, Electronic Arts will become a private company, fully owned by investment firms rather than regular shareholders. The acquisition is not expected to be completed until the first quarter of 2027.

Upon completion of the transaction, EA will remain headquartered in Redwood City, California, and continue to be led by CEO Andrew Wilson. What impact the acquisition will have on the lineup of games EA has planned to release in the coming years remains unclear.

Electronic Arts, or EA, is an American video game company that was founded in 1982 by former Apple employee Trip Hawkins. Thanks to franchises like FIFA, The Sims, Need For Speed, Battlefield, Medal of Honor, and Apex Legends, EA has become one of the largest companies in the video gaming industry.

EA became notorious with regulators and parents for introducing alternative revenue models, including microtransactions, loot boxes, and battle passes. Especially the controversy around loot boxes, which were considered a form of gambling, led to debates around the world about whether they should be regulated.