Electronic Arts (EA), the company behind games like FIFA, The Sims, and Battlefield, is being bought for a record $55 billion in cash by Saudi Arabia’s Public Investment Fund, Silver Lake, and Jared Kushner’s Affinity Partners. EA’s shareholders will each get $210 per share, which is 25% more than the stock price before rumors of this deal came out.
After the buyout, EA will no longer be a publicly traded company, ending its run on the stock market after 36 years. EA will remain based in Redwood City, California. Andrew Wilson, who’s been the CEO since 2013, will keep his job and run EA as it starts this new chapter.
This deal is backed by $36 billion in equity plus $20 billion in debt. Saudi Arabia’s fund already owned about 10% of the company and will continue as a major investor. The takeover is expected to be finished by early 2027.
The buyout is one of the largest in entertainment and gaming history. For EA, this means they can focus more on making games, with less pressure from the stock market. However, because of the huge debt, there may be more cost-cutting and layoffs in the future.
Saudi Arabia’s investment shows its growing interest in gaming. It has also bought stakes in companies like Nintendo and Take-Two. This deal will help EA reach more players around the world and marks a historic moment for gaming.