Electronic Arts has gone private after being bought by a Saudi fund and other private equity firms. Photos by Electronic Arts
Sept. 29 (UPI) — Electronic Arts has been sold to private investors in the Public Investment Fund of Saudi Arabia, Silver Lake and Affinity Partners in an all-cash deal worth $55 billion.
Stockholders will be paid $210 per share.
EA stock rose about 15% Friday, closing at $193.35, after the Wall Street Journal said the company was about to go private. This morning, the stock was at $202.80.
The all-cash purchase is valued at about $55 billion.
“The transaction positions EA to accelerate innovation and growth to build the future of entertainment,” a press release said.
“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 Jared Kushner, Affinity Partners CEO and son-in-law of President Donald Trump, in a statement.
Under the terms of the agreement, the consortium of investors will acquire EA, with PIF rolling over its existing 9.9% stake in the company. The $210 per share purchase price represents a 25% premium to EA’s unaffected share price of $168.32 at market close on Friday, the last fully unaffected trading day, and a premium to EA’s unaffected all-time high of $179.01 at market close on Aug. 14, the press release said.
EA will remain headquartered in Redwood City, Calif., and Andrew Wilson will stay on as CEO. The deal is set to close in the first quarter of fiscal year 2027.
EA makes games such as Battlefield, The Sims and Madden NFL games. It will be the largest leveraged buyout in Wall Street history, CNBC reported
In a note to employees, Wilson said he is “excited to continue as CEO.”
“Our new partners bring deep experience across sports, gaming, and entertainment,” CNBC reported he wrote. “They are committed with conviction to EA — they believe in our people, our leadership, and the long-term vision we are now building together.”