Electronic Arts has been bought out for $55 billion, company will be going private
Electronic Arts, one of the biggest publishers in the gaming industry, has just been bought by an investment group. Three firms--the Saudi Arabia Public Investment Fund, Silver Lake, and Affinity Partners--will be purchasing EA for a massive $55 billion dollars. This buyout will make EA a private company, with shareholders receiving a 25% bonus payout to their share price. As to how this will affect EA and its gaming divisions going forward, the press release and statements from the investment firms simply state that this move will help EA to expand their worldwide reach and accelerate their innovation and growth within the industry.
REDWOOD CITY, Calif.--(BUSINESS WIRE)-- Electronic Arts Inc. (NASDAQ: EA) (“EA” or the “Company”), a global leader in interactive entertainment, today announced that it has entered into a definitive agreement to be acquired by an investor consortium (“the Consortium”) comprised of PIF, Silver Lake, and Affinity Partners in an all-cash transaction that values EA at an enterprise value of approximately $55 billion. The transaction positions EA to accelerate innovation and growth to build the future of entertainment.
The deal will close sometime in the 2027 fiscal year. Of the $55 billion dollars purchase price, $20 billion will come from debt financing between the three investment groups. This debt could lead to EA cutting even more jobs and limiting what projects the publisher decides to take on, as they pay down the balance over the next few years, according to industry analysists. Electronic Arts' current CEO, Andrew Wilson, will remain with the company after the buyout.
The revenue generated by big games like EA Sports FC, Madden and Battlefield 6 will be needed to service this debt, which may impact EA's ability to invest in new games,














