Electronic Arts $55 Billion Buyout Marks Largest Gaming Deal in History

By Advos

TL;DR

Electronic Arts' $55 billion acquisition by Silver Lake Partners and others provides private ownership advantage to restructure without public market pressures amid industry consolidation.

Silver Lake Partners, Saudi Arabia's Public Investment Fund and Affinity Partners will pay $210 per share in a leveraged buyout to take EA private.

This acquisition positions EA to focus on long-term innovation and game development, potentially improving future entertainment experiences for millions of players worldwide.

Electronic Arts' $55 billion buyout becomes the largest leveraged acquisition ever, surpassing the 2007 TXU utility deal and ending EA's 36-year public trading history.

Found this article helpful?

Share it with your network and spread the knowledge!

Electronic Arts $55 Billion Buyout Marks Largest Gaming Deal in History

Electronic Arts Inc. (NASDAQ: EA) will be acquired for $55 billion in what would be the largest leveraged buyout ever attempted, according to a report from Channelchek, a Noble Financial Group digital market platform. The acquisition consortium consisting of Silver Lake Partners, Saudi Arabia's Public Investment Fund and Jared Kushner's Affinity Partners will pay $210 per share to take the gaming giant private, surpassing the previous record of $32 billion for the TXU utility buyout in 2007.

The transaction would end EA's 36-year history as a publicly traded company, which began with its 1989 initial public offering at a split-adjusted 52 cents per share. This monumental deal comes at a critical juncture for Electronic Arts as the company faces stagnant revenues and increasing competitive pressures in the gaming market. The timing is particularly significant following Microsoft's (NASDAQ: MSFT) $69 billion acquisition of Activision Blizzard in 2023, which reshaped the competitive landscape of the gaming industry.

The $55 billion buyout highlights the accelerating consolidation trend across the global gaming sector. As major players combine forces and private equity firms take increasing interest in gaming companies, the industry is undergoing fundamental structural changes. This deal positions Electronic Arts to undertake significant restructuring under private ownership, free from the quarterly earnings pressures and shareholder expectations that characterize public markets.

Electronic Arts, publisher of popular franchises including Madden NFL, Battlefield and The Sims, has been a dominant force in interactive entertainment. The company develops and delivers games, content and online services for internet-connected consoles, mobile devices and personal computers. In fiscal year 2025, EA posted GAAP net revenue of approximately $7.5 billion, demonstrating the substantial scale of the business being taken private.

The full report detailing this historic transaction is available at https://ibn.fm/zOLdl. More information about Electronic Arts and its portfolio of gaming brands can be found at https://www.ea.com/news. The company's main website at https://www.ea.com/ provides additional details about its operations and game offerings.

This acquisition represents a watershed moment for the gaming industry, potentially setting new precedents for private equity involvement in technology and entertainment sectors. The involvement of major financial players like Silver Lake Partners alongside sovereign wealth funds indicates growing recognition of gaming as a mature, valuable industry worthy of massive investment. The deal's completion would not only reshape Electronic Arts' future direction but could influence how other gaming companies approach ownership structures and strategic planning in an increasingly competitive market.

blockchain registration record for this content
Advos

Advos

@advos