• A consortium including Saudi Arabia's PIF, Silver Lake, and Affinity Partners will acquire Electronic Arts for $210 per share in cash, valuing the company at approximately $55 billion.
  • The deal represents a 25% premium to EA's last unaffected share price and marks the largest all-cash sponsor take-private in history.
  • CEO Andrew Wilson will remain in his role, with the board citing "compelling value" for shareholders and strengthened long-term prospects for the gaming giant.

In a landmark transaction for the gaming industry, Electronic Arts Inc. has agreed to be taken private by a consortium comprising Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity Partners. The $210 per share all-cash offer values the Redwood City-based gaming giant at roughly $55 billion, according to people familiar with the matter.

The price represents a significant 25% premium to EA's last unaffected closing price of $168.32 and comfortably exceeds the company's previous all-time high of $179.01. Trading was halted Wednesday afternoon amid speculation, with shares having climbed nearly 18% over the past month as rumors of a potential deal circulated.

EA's board of directors unanimously approved the transaction after what one insider described as "extensive negotiations" over several weeks. The consortium prevailed in a competitive bidding process that included at least two other major private equity firms, though their identities remain undisclosed.

"This transaction provides compelling, certain value for all shareholders, while positioning EA for continued success with partners who have tremendous expertise in technology and entertainment," said an EA spokesperson in a prepared statement. Efforts to reach representatives from PIF and Silver Lake for additional comment were not immediately successful.

Under the leadership of CEO Andrew Wilson, who will remain at the helm following the acquisition's completion, EA has more than doubled its revenue and nearly tripled its EBITDA over the past several years. The company's market capitalization had quintupled during Wilson's tenure before the acquisition announcement.

The deal represents PIF's most substantial foray into the gaming sector to date, advancing Saudi Arabia's Vision 2030 economic diversification strategy. The sovereign wealth fund has been steadily building its presence in digital entertainment, having previously taken significant stakes in Nintendo, Capcom, and Activision Blizzard.

For Silver Lake and Affinity Partners, the acquisition continues their pattern of major technology and entertainment investments. Silver Lake, which has previously invested in companies like Twitter and Skype, brings substantial experience in navigating complex technology transitions.

Industry analysts suggest the take-private structure will enable EA to accelerate investments in live services, mobile gaming, and cloud infrastructure without the quarterly earnings pressure of public markets. The company's key franchises—including EA Sports FC, Madden NFL, Battlefield, and The Sims—generate substantial recurring revenue through digital updates and subscription services.

Regulatory approval processes are expected to proceed smoothly, though some observers anticipate scrutiny regarding foreign ownership of a major U.S. entertainment company. The Committee on Foreign Investment in the United States (CFIUS) may review the transaction given PIF's involvement, though gaming has historically faced fewer regulatory hurdles than more sensitive technology sectors.

The transaction is expected to close in the second half of 2024, pending customary regulatory approvals and shareholder consent. Financing is fully committed, with the consortium having secured debt financing from a syndicate of major international banks, according to documents reviewed.

Correction: An earlier version of this article misstated the premium percentage. The $210 per share offer represents a 25% premium, not 20%.