Electronic Arts Bought Out By Saudi Arabia’s Public Investment Fund For $55 Billion In Largest Public Company Buyout Ever
Electronic Arts (EA) has announced that they are being bought out by investors, including the Saudi Arabian Public Investment Fund. At an eye-watering $55 billion, it’s the largest buyout of a public company going private.
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Approved by EA’s Board of Directors and per a press release, the “investor consortium” will acquire 100% EA for approximately $55 billion includes the Public Investment Fund (PIF) — the Saudi Arabian wealth fund run by Crown Prince Mohammed bin Salman Al Saud. It previously owned 9.9% of EA.
The consortium also includes Silver Lake (an equity firm), and Affinity Partners (an investment fund). It should be noted the largest investor into Affinity Partners is also PIF, and was founded by Jared Kushner — the son-in-law of President Donald Trump.
According to the Financial Times and “people involved in the transaction,” Kushner was the key to the deal being completed, and courting the PIF.
The press release touts the trio as having “deep sector experience, committed capital, and global portfolios with networks across gaming, entertainment, and sports that offer unique possibilities for EA to blend physical and digital experiences, enhance fan engagement, and create new growth opportunities.”
It’s also noteworthy for being “he largest all-cash sponsor take-private investment in history.”
After the deal closes in Q1 FY27, EA will no longer be on any public market. EA stockholders will be getting $210 per share in cash, representing “a 25% premium to EA’s unaffected share price of $168.32″ as of September 25th, and ” a premium to EA’s unaffected all-time high of $179.01″ on August 14th this year.
Further, the consotrium will be funding the transaction via an equity investment of approximately $36 billion, along with $20 billion of debt financing by JPMorgan Chase Bank ($18 billion at close). The company’s headquarters will remain in Redwood City, California; with CEO Andrew Wilson still at the helm.
In recent years, EA has seen restructuring, subsidiary BioWare laying off 50% of employees, Dragon Age: The Veilguard and EA Sports FC 25 under-performing, and yet more layoffs at BioWare and EA as a whole. Nonetheless, EA’s stock price was better than the same time last year, even before the buyout news broke.
PIF have been getting involved in gaming — becoming EA, Activision Blizzard, and Take-Two Interactive largest shareholders in 2021.
We’ve also seen them investing into Capcom and Nexon, the Embracer Group (though a $2 billion deal fell through with the PIF’s Savvy Games), co-ownership of EVO, Pokémon GO‘s Niantic via Savvy Games, and SNK.
So what are the consortium’s plans for EA? Per the aforementioned sources at the Financial Times, they are going to be using AI to cut costs and “significantly” boost profits.
