"In what could become the largest-ever buyout funded by private equity, video game maker Electronic Arts has agreed to be acquired in a deal valued at $55 billion. Beyond the potentially record-breaking price tag, the deal could bring wider shifts in the gaming world. Electronic Arts (EA) owns popular titles like Madden NFL, Battlefield and The Sims and going private could potentially grant the company more freedom in developing and distributing future games."
"The proposed buyout also marks the latest move from Saudi Arabia's sovereign wealth fund PIF to invest in gaming. If the transaction gets the green light, PIF would join Silver Lake Partners and Affinity Partners, run by U.S. President Donald Trump's son-in-law Jared Kushner, as EA's new owners. The companies aim to close the all-cash acquisition by the first quarter of 2027."
"The size of the video game market has attracted significant investment from large investors in recent years. And analysts note that Redwood City, California-based EA brand and lineup of titles make it a popular acquisition target. The proposed acquisition also arrives as competition grows. One of EA's biggest rivals, Activision Blizzard, was snapped up by technology powerhouse Microsoft for nearly $69 billion in 2023, for example, while the competition from mobile video game makers such as Epic Games has intensified."
Electronic Arts has agreed to be acquired in a $55 billion all-cash buyout by a group led by Saudi Arabia's PIF alongside Silver Lake and Affinity Partners. The buyers aim to complete the transaction by the first quarter of 2027, and the deal could become the largest private-equity-funded buyout. Going private could give EA more freedom in developing and distributing games, though the company's future under new ownership is uncertain. The acquisition reflects strong investor interest amid growing competition from major deals like Microsoft's acquisition of Activision Blizzard and rising mobile-game rivals.
Read at www.mercurynews.com
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