Video game publisher Electronic Arts (EA) has agreed to be acquired and taken private by a powerful investor group. The consortium includes the private equity firm Silver Lake, Saudi Arabia’s Public Investment Fund, and Affinity Partners, the investment firm led by Jared Kushner.
The company announced the $55 billion deal on Monday. It highlights a major bet by deep-pocketed investors on the lasting value of top-tier game franchises, even as the broader industry faces economic challenges.
Under the terms of the agreement, EA shareholders will reportedly receive $210 for each share they own. This price represents a 25 percent premium over the stock’s closing price on September 25, before rumors of a potential deal began to circulate. The total equity value is approximately $52.54 billion.
The move to become a private company comes at a pivotal moment for EA. The publisher is relying on its core sports games, like the FIFA and Madden NFL series, and its action shooter titles, including the upcoming “Battlefield 6,” to navigate a period of cautious consumer spending.
The transaction is backed by about $36 billion in equity from the investing partners and $20 billion in debt financing arranged by JPMorgan. The deal is expected to be finalized in the first quarter of EA’s 2027 fiscal year. Should EA back out to accept a superior offer, it would face a termination fee of $1 billion. The buying group would owe a similar penalty under specific conditions, such as a significant regulatory delay.
Source: Reuters