After 35 years as a publicly traded company, video game giant Electronic
Arts (EA) will go private, agreeing to a $55 billion joint-venture acquisition.
The investor consortium buying EA consists of Saudi Arabia Public Investment Fund (PIF), Silver Lake, and Affinity
Partners. Electronic Arts stockholders will receive $210 per share in cash, representing a 25% premium to EA's current share price, according to a statement issued by EA.
This marks the
largest-ever leveraged buyout, according to a report by Bloomberg.
The acquisition follows EA rival Activision Blizzard's $69 billion acquisition in 2023 by Microsoft, which
highlights the gaming industry's intensified move toward mobile gaming via shifting consumer habits.
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Over the past year, EA has struggled to maintain strategic ground in the gaming industry.
The company laid off over 650 employees in 2024 and canceled its long-awaited “Black Panther” game and shuttering the studio that developed it.
The company's annual revenues have
also been stagnant over the past three years, remaining between $7.4 billion and $7.6 billion.
Per EA's statement, PIF, Silver Lake, and Affinity Partners will combine their industry
experience, capital and connections in gaming in an attempt to invest in EA's physical and digital experiences, fan engagement, and new growth opportunities.
Electronic Arts expects the deal
to become final in the first quarter of 2027. The deal still needs to be approved by EA shareholders.