Electronic Arts has officially announced its intention to go private in a monumental acquisition valued at approximately $55 billion. This deal will see shareholders receive a premium of $210 per share in cash, representing a 25% increase. The consortium leading this buyout comprises Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners. Current EA CEO Andrew Wilson is expected to retain his position, and PIF’s existing 9.9% stake in the company will be rolled over into the new private entity. This significant news emerges just under two weeks before the highly anticipated launch of Battlefield 6, a title analysts widely expect to significantly enhance EA’s financial performance.
Beyond the upcoming Battlefield 6, EA boasts a robust lineup of successful live-service titles, including popular sports franchises like EA FC and the highly acclaimed battle royale game Apex Legends. CEO Andrew Wilson’s comments within the announcement suggest that this strategic focus on engaging, ongoing experiences is set to continue. Wilson stated, “Our creative and passionate teams at EA have consistently delivered extraordinary experiences to hundreds of millions of fans, cultivated some of the world’s most iconic intellectual properties, and generated substantial value for our enterprise. This milestone powerfully acknowledges their incredible dedication. Moving forward, we are committed to pushing the frontiers of entertainment, sports, and technology, uncovering new possibilities. Collaborating with our partners, we aim to craft transformative experiences that will inspire future generations. I feel more invigorated than ever about the future we are collectively building.”
This acquisition marks the largest all-cash take-private investment by a sponsor in history, standing as one of the most significant deals since Microsoft’s purchase of Activision in 2022. Despite its staggering size, financial analysts suggest that the $55 billion valuation might undervalue EA’s actual worth. They point to the imminent release of Battlefield 6 and a strong lineup of future revenue-generating titles, asserting that “EA’s full earning potential is only just beginning to manifest.”
Further statements in the announcement came from Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF, and Affinity Partners CEO Jared Kushner. Alnowaiser emphasized PIF’s strong standing in the global gaming and esports sectors, aiming to “build and support ecosystems that connect fans, developers, and IP creators,” hinting at further investment in initiatives like the Esports World Cup.
Despite the strategic vision, the acquisition has sparked considerable unease among fans. This sentiment stems from the controversial reputation of Prince Mohammed bin Salman, who chairs PIF and is Saudi Arabia’s ruler. Allegations from sources like the CIA suggest his complicity in the assassination of journalist Jamal Khashoggi, and human rights organizations, including Amnesty International, have documented concerns regarding the country’s human rights record.