EA confirms that it will be acquired for $55 billion by investors, including Saudi Arabia’s PIF
The company says the buyout will “accelerate its strategic vision to advance the future of entertainment”
Electronic Arts has confirmed that it will be acquired by a group of private investors including Saudi Arabia’s sovereign wealth fund.
In a statement, EA said it had “entered into a definitive agreement to be acquired by an investor consortium comprised of PIF, Silver Lake, and Affinity Partners”.
The all-cash transaction values EA at around $55 billion, and will see the consortium acquiring 100% of the company. EA stockholders will receive $210 per share in cash, which is a 25% premium on the company’s last unaffected share price of $168.32, and a premium on its all-time highest share price of $179.01.
EA says the transaction, which has been approved by its board of directors and is expected to close in Q1 of its fiscal year 2027 (meaning by the end of June 2026), “positions EA to accelerate innovation and growth to build the future of entertainment”. The deal will see EA continuing to be led by its current CEO Andrew Wilson, and will remain headquartered in Redwood City, California.
In a statement, Wilson said: “Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work.
“Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.”
The PIF – or Public Investment Fund – is the sovereign wealth fund of Saudi Arabia and is reportedly central to Crown Prince Mohammed bin Salman’s goal of making the Saudi economy less reliant on proceeds from oil. The fund already owns billions of stock in other video game companies, such as Take-Two, and owns other companies such as SNK.
In recent years Saudi Arabia officials have said its investments in the games industry will help modernize the kingdom, but they have come with negative fallout due to the country’s highly criticised human rights abuses.
Notably, the crown prince has been accused by US Intelligence of ordering the brutal murder of journalist Jamal Khashoggi. The country has also has historically cracked down on female activists and LBGTQI+ rights, with legal repercussions for LGBTQI+ individuals including imprisonment, fines or the death penalty according to Amnesty International.
Affinity Partners is an American investment firm which was formed in 2021 by Donald Trump’s son-in-law Jared Kushner, and mainly focuses on investing in US and Israeli companies, with most of its funding coming from the Saudi Arabian government.
“Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future,” Kushner said in a statement. “I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games – and now enjoys them with his kids – I couldn’t be more excited about what’s ahead.”
Silver Lake Partners is an investment fund run by Silver Lake, a US global private equity film based in Silicon Valley.
“This investment embodies Silver Lake’s mission to partner with exceptional management teams at the highest quality companies,” Silver Lake co-CEO and managing partner Egon Durban said in a statement. “EA is a special company – a global leader in interactive entertainment, anchored by its premier sports franchise, with accelerating revenue growth and strong and scaling free cash flow.
“We are honored to invest and partner with Andrew [Wilson] – an extraordinary CEO who has doubled revenue, nearly tripled EBITDA, and driven a fivefold increase in market cap during his tenure.
“The future for EA is bright, we are going to invest heavily to grow the business and we are excited to support Andrew and the EA team as the company accelerates innovation, expands its reach worldwide, and continues to deliver incredible experiences to players and fans across generations.”
