Posted in: Electronic Arts, Games, Video Games | Tagged: Affinity Partners, Saudi Arabia Public Investment Fund, Silver Lake
Electronic Arts Confirms Its Been Acquired For $55B
Electronic Arts has announced its been acquired for $55 billion, but you're probably not going to be thrilled by the new owners
Article Summary
- Electronic Arts sold to a consortium for $55 billion in an all-cash deal, ending its public status.
- The buyers include Saudi Arabia's PIF, Silver Lake, and Affinity Partners led by Jared Kushner.
- EA shareholders will receive $210 per share, a 25% premium over the last unaffected stock price.
- EA will stay headquartered in Redwood City, with Andrew Wilson continuing as CEO after the acquisition.
The future of Electronic Arts is now clearer, but gamers may not be entirely thrilled with it, as the company is officially being acquired. The company revealed that an investor consortium has bought them, made up of the Saudi Arabia Public Investment Fund, Silver Lake, and Affinity Partners (that last one being owned by Jared Kushner, President Trump's son-in-law). According to the announcement made this morning, the deal was made as an all-cash transaction, with the goal to "accelerate innovation and growth to build the future of entertainment."
Gamers were already unhappy on social media with the fact that PIF was involved with the potential sale (even though they already owned 10% of the company before this deal was made public), but seeing the other two companies involved will most likely receive more negativity. The news is barely an hour old this morning, and already some developers and other notable names have said they won't work with the company in any capacity once the sale is finalized. What's more, as we've learned multiple times in the past, no sale or acquisition comes without layoffs. Which means at some point, whether they wish to admit it or not, the company is most likely going to get rid of a bunch of people when the deal is done. We have more info from today's press release for you here, as we now have to wait and see what this new era has in store for the company.
Electronic Arts' 2025 Acquisition
Under the terms of the agreement, the Consortium will acquire 100% of EA, with PIF rolling over its existing 9.9% stake in the Company. EA stockholders will receive $210 per share in cash. The per share purchase price represents a 25% premium to EA's unaffected share price of $168.32 at market close on September 25, 2025, the last fully unaffected trading day, and a premium to EA's unaffected all-time high of $179.01 at market close on August 14, 2025.
PIF, Silver Lake, and Affinity Partners bring deep sector experience, committed capital, and global portfolios with networks across gaming, entertainment, and sports that offer unique possibilities for EA to blend physical and digital experiences, enhance fan engagement, and create new growth opportunities. The transaction represents the largest all-cash sponsor take-private investment in history, with the Consortium partnering closely with EA to enable the Company to move faster and unlock new opportunities on a global stage.
Transaction Details
The transaction was approved by EA's Board of Directors, is expected to close in Q1 FY27, and is subject to customary closing conditions, including receipt of required regulatory approvals and approval by EA stockholders. Following the close of the transaction, EA's common stock will no longer be listed on any public market.
The transaction will be funded by a combination of cash from each of PIF, Silver Lake, and Affinity Partners as well as roll-over of PIF's existing stake in EA, constituting an equity investment of approximately $36 billion, and $20 billion of debt financing fully and solely committed by JPMorgan Chase Bank, N.A., $18 billion of which is expected to be funded at close. Each of PIF, Silver Lake, and Affinity Partners plans to fund the equity component of the financing entirely from capital under its respective control. Upon completion of the transaction, EA will remain headquartered in Redwood City, California, and continue to be led by Andrew Wilson as CEO.
