Electronic Arts (EA), the video game publisher behind major franchises like “Madden NFL” and “The Sims,” is being taken private by a group of investors.

According to AP News, EA will reportedly be acquired in the largest private equity-funded buyout in history, valued at $55 billion. EA shareholders will receive $210 per share in cash.

So, who bought EA? The consortium includes:

  • Saudi Arabia’s Public Investment Fund (PIF): Held a 9.9% stake in EA before the deal, the largest insider stake, and will roll over that investment. With “intentions to scale,” PIF owns Savvy Gaming Group and has purchased companies such as ESL, FACEIT, and Scopely.
  • Silver Lake Partners: A private equity firm focused on technology and media investments. Silver Lake is also part of the new Oracle-led joint venture set to take on management of TikTok’s U.S. operations.
  • Affinity Partners: Led by Jared Kushner, President Donald Trump’s son-in-law, the firm is a participant in the buyout.

The transaction requires shareholder approval and review by the Committee on Foreign Investment in the U.S. (CFIUS) due to Saudi involvement, per AP News. The CFIUS will evaluate the transaction for potential national security and foreign ownership considerations. The deal is expected to close in the first quarter of fiscal 2027 if approved.

Why EA Was Targeted For Acquisition

Founded in 1982, according to its website, EA has become one of the most influential video game publishers worldwide. Its catalog includes:

  • Sports titles such as “Madden NFL” and “FIFA/EA Sports FC”
  • First-person shooters like “Battlefield”
  • Life simulation games such as “The Sims”
  • Live service titles including “Apex Legends”

According to AP News, annual revenues have remained steady, ranging from $7.4 billion to $7.6 billion over the past three fiscal years. The buyout offers a path for the company to operate outside the reporting requirements of public markets. Analysts have also pointed to upcoming titles, such as “Battlefield 6,” as part of EA’s future value.

What It Means For The Gaming Industry

Industry consolidation has been notable in recent years. In October 2023, Microsoft acquired Activision Blizzard for $69 billion. As AFROTECH™ previously reported, Microsoft subsequently reduced its gaming division workforce by approximately 1,900 employees. With EA going private, the number of large independent game publishers will continue to decline, which may impact competition and partnerships across the industry.

EA’s headquarters will remain in Redwood City, CA, and CEO Andrew Wilson will continue to lead the company, per AP News. The outlet also states that its major franchises are expected to remain central to its portfolio. Financing details indicate the transaction involves about $20 billion in debt, backed by JPMorgan Chase, Bloomberg reports.

Looking Ahead: Who Bought EA Could Shape Its Future

If the deal closes as expected, it will mark the end of EA’s 36-year run as a publicly traded company, AP News reports. EA’s first day of trading closed at 52 cents per share after a stock split, compared with the $210 per share buyout price. The company went public seven years after its founding.

The agreement highlights continued investment activity in the growing gaming sector, particularly from sovereign wealth funds and private equity, signaling that the investors who bought EA may influence the industry’s next phase.