Electronic Arts to be acquired for $52B in largest private equity buyout
7 hours ago
- #Private Equity
- #Mergers & Acquisitions
- #Gaming Industry
- Electronic Arts (EA) is being acquired for $52.5 billion by Silver Lake Partners, Saudi Arabia’s PIF, and Affinity Partners.
- The deal, if approved, will be the largest-ever private-equity buyout, surpassing the $32 billion TXU deal in 2007.
- PIF, already EA’s largest insider stakeholder with a 9.9% stake, will roll over its existing shares.
- EA will go private, ending its 36-year history as a publicly traded company, with headquarters remaining in Redwood City, CA.
- CEO Andrew Wilson will continue leading EA post-acquisition.
- The acquisition aligns with Saudi PIF’s aggressive expansion in gaming, including previous stakes in ESL, FACEIT, and Scopely.
- EA’s revenues have stagnated at $7.4–$7.6 billion annually, facing competition from Microsoft’s $69 billion Activision Blizzard buyout and mobile gaming rivals like Epic Games.
- Post-acquisition, EA may restructure operations without public market pressures, though layoffs are not confirmed after recent workforce reductions.
- The deal is expected to close in Q1 2027, pending shareholder approval.
- EA’s stock rose over 5% pre-market following the announcement.