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
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 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. Still, what its future under new ownership could look like has yet to be seen.
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 ElectronTheic Arts’ new owners. The companies aim to close the all-cash acquisition by the first quarter of 2027.
Here’s what we know.
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 — particularly 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.
PIF, Silver Lake and Affinity’s combined offer to acquire EA far exceeds the $32 billion price tag to take Texas utility TXU private in 2007, which had previously shattered records for leveraged buyouts. A leveraged buyout means a company is purchased largely using borrowed funds, and requires the acquired company to repay the debt taken on to finance the deal.
It’s possible that the deal could give EA more freedom in future development and distribution of its games.
