Video game maker Electronic Arts – known for The Sims, Madden NFL, Plants vs. Zombies and more – is going private in a deal valued at roughly $55 billion.
Saudi Arabia’s Public Investment Fund, private equity firm Silver Lake and Jared Kushner’s Affinity Partners will acquire EA in the all-cash deal that marks the largest-ever leveraged buyout in history.
EA shareholders will receive $210 per share in cash.
The Wall Street Journal first reported that the company was nearing a deal on Friday.
The deal was approved by EA’s board and is expected to close in the first quarter of fiscal year 2027. Once closed, the stock will no longer be listed on any public market.
The deal to take EA private marks further consolidation within the industry, after titans such as Activision Blizzard and Zynga were swooped up by even larger firms, further reducing the number of publicly listed video game companies.
EA is headquartered in Redwood City, California. The company was founded in 1982.
GAMESTOP CEO TURNS NINTENDO SWITCH 2 PACKAGING DISASTER INTO ASTOUNDING CHARITY WIN
“We create stories and deliver amazing experiences that resonate with audiences around the world and make an impact in the communities where we live, work and play,” EA’s website says.
“Our values and vision as a global company continue to drive us to create a welcoming workplace, foster inclusive communities, invest in the next generation of innovators and artists, and progress our environmental initiatives,” it continues.
MOVIE THEATERS, MOVIE STAR DISCOURAGE CHAOS DURING ‘MINECRAFT’ SCREENINGS
The company’s most recent earnings results said its fiscal year had started out “strong.”
“We delivered a strong start to FY26, outperforming expectations ahead of what will be the most exciting launch slate in EA’s history,” Andrew Wilson, CEO of Electronic Arts, said in a statement. “From deepening player engagement in EA SPORTS to gearing up for Battlefield 6 and skate., we’re scaling our global communities and continuing to shape the future of interactive entertainment.”
Net revenue for the company’s fiscal year 2026 first quarter, which ended on June 30, was $1.671 billion.
Reuters contributed to this report.
Read the full article here
