NEW YORK—Electronic Arts (EA), the powerhouse U.S. video game publisher known for blockbuster franchises like Battlefield, FIFA, and Madden NFL, announced Monday it has agreed to a definitive deal to be acquired by an investor consortium and taken private. The all-cash transaction is valued at $55 billion (approximately 73.5 trillion South Korean Won), making it the largest leveraged buyout (LBO) in Wall Street history.
The buyer group is comprised of Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners, the investment vehicle founded by former U.S. presidential advisor and son-in-law, Jared Kushner. The PIF, which already held an approximately 10% stake in EA, will roll over its existing equity into the new private company structure.
The $210 per share purchase price represents a significant 25% premium over EA's closing stock price on September 25, the last unaffected trading day before news of the potential takeover began to circulate. The deal's monumental size surpasses the previous LBO record set in 2007, when KKR and TPG acquired power company TXU in a deal valued at approximately $32 billion (excluding debt assumption).
Investment Consortium's Strategic Move
The move highlights the surging global investment interest in the gaming and digital entertainment sector. Silver Lake, a specialist in technology private equity, has been involved in several high-profile tech deals, including a previous involvement with the U.S. operations of TikTok. Affinity Partners, led by Kushner, is one of the key players in the consortium, bringing a high-profile U.S. political connection to the Saudi-backed deal.
EA's management has confirmed that CEO Andrew Wilson, who has led the company since 2013, will remain in his role following the transition to a privately held company. This suggests a focus on business continuity and pursuing long-term strategies without the quarter-to-quarter pressures of the public market.
The acquisition is subject to approval from EA shareholders and customary regulatory approvals. The company expects the transaction to close in the first quarter of its fiscal year 2027. Once completed, the buyout will end EA's 36-year run as a publicly traded company. The new private structure is anticipated to provide EA with the flexibility and capital to accelerate innovation and growth in the fiercely competitive global gaming industry.
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