Electronic Arts, a leader in the video game industry, has announced a groundbreaking deal worth $55 billion to transition into a private entity. This significant move is backed by the Saudi Arabia Public Investment Fund (PIF), the prominent private equity firm Silver Lake, led by Egon Durban, and Jared Kushner’s Affinity Partners. Under the terms of the agreement, EA shareholders will receive $210 per share in cash, while PIF will maintain its nearly 10 percent stake in the company. The deal is anticipated to close by the end of EA’s fiscal first quarter in 2027.
As one of the largest players in the gaming sector, Electronic Arts has been at the forefront of creating beloved franchises such as Battlefield and Madden NFL. CEO Andrew Wilson, who has been instrumental in transforming the company’s business model over the past decade, has shifted the focus towards generating recurring revenue through subscriptions. Wilson is set to retain his position as CEO following the completion of this deal, and he will also become a major shareholder.
In a statement regarding the acquisition, Wilson expressed pride in the efforts of EA’s dedicated teams, stating, “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.” He emphasized the company’s commitment to pushing the boundaries of entertainment, sports, and technology, and looks forward to unlocking new opportunities in collaboration with their partners.
Turqi Alnowaiser, the deputy governor and head of international investments at PIF, highlighted the fund’s strategic positioning in the global gaming and esports sectors. He stated, “PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators. This partnership will further drive EA’s long-term growth while fueling innovation within the industry on a global scale.”
Egon Durban, co-CEO and managing partner of Silver Lake, expressed enthusiasm about investing in EA, noting, “This investment embodies Silver Lake’s mission to partner with exceptional management teams at the highest quality companies. EA is a special company: a global leader in interactive entertainment, anchored by its premier sports franchise, with accelerating revenue growth and strong free cash flow.” He praised Wilson for his leadership that has doubled revenue, nearly tripled EBITDA, and increased market cap fivefold during his tenure.
With a confident outlook, Durban added, “The future for EA is bright. We are going to invest heavily to grow the business and 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.”
Jared Kushner, CEO of Affinity Partners, also shared his excitement about the partnership, stating, “Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future. 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.”
This strategic deal marks a pivotal moment for Electronic Arts, positioning the company for continued growth and innovation in the gaming industry.
