Electronic Arts plans to become a private company, the firm announced on Monday. Photo credit: Christian Petersen/Getty Images.
As reported by CNN
New York-based video game maker Electronic Arts (EA) will be privatized in a deal valued at roughly $55 billion, financed by Saudi Arabia and Affinity Partners, an investment firm backed by Jared Kushner. The news marks one of the largest privatization moves in the industry in recent years.
The company, known for the Madden NFL, The Sims, and Battlefield series, said the consortium would be led by the Saudi Public Investment Fund, along with Silver Lake and Affinity Partners. The offer is $210 per share – the aggregate price represents the largest buyout in EA’s history and a premium to the previous closing price on the prior trading day.
EA’s shares rose in early trading by about 5%. The buyout proposal has become one of the hottest topics in digital entertainment and privatization deals this fall. The expected size and financing structure underscore the company’s strategic importance to the global video game industry.
Deal context and its impact on the industry
Our creative and passionate teams at EA have delivered exceptional experiences to hundreds of millions of fans, built some of the world’s most recognizable IP, and created significant value for our business.
The ability to create iconic, enduring experiences, and as someone who grew up playing their games – and now enjoys them with his children – I couldn’t be more excited about what’s ahead.
It is expected that the deal will close in the first quarter of EA’s 2027 fiscal year and will be subject to regulatory approval in various jurisdictions. EA, founded in 1982, has a broad portfolio of games, including sports simulators and first-person shooters, among which are legendary franchises and upcoming releases such as Battlefield 6.
Last year, the company cut roughly 5% of its staff, joining other giants of the industry that were trimming headcount after demand peaked during the Covid-19 pandemic and shifts in consumer habits. This trend underscores market adaptability and the need for strategic decisions to maintain competitiveness in the dynamic video game industry.
