Electronic Arts to Be Acquired for $52.5 Billion

**Electronic Arts to Be Acquired for $52.5 Billion** Electronic Arts (EA), known for popular video games such as "Madden NFL," "Battlefield," and "The Sims," is set to be acquired for $52.5 billion. This deal, which could become the largest buyout funded by private equity firms, involves Silver Lake Partners, Saudi Arabia's Public Investment Fund (PIF), and Affinity Partners. The firms will pay EA shareholders $210 per share, valuing the total deal at approximately $55 billion when including debt. Affinity Partners is led by Jared Kushner, the son-in-law of former President Donald Trump. PIF, already the largest insider stakeholder in EA, will maintain its existing 9.9% stake in the company. Andrew Marok of Raymond James noted that PIF has been actively investing in the video gaming market since 2022, acquiring minority stakes in various public gaming publishers and purchasing companies like ESL and Scopely. He stated, "The PIF has made its intentions to scale its gaming arm, Savvy Gaming Group, clear, and the EA deal would represent the biggest such move to date by some distance." The acquisition will take EA private, with its headquarters remaining in Redwood City, California. This deal surpasses the previous record of $32 billion paid to take Texas utility TXU private in 2007. If finalized, it will conclude EA's 36-year run as a publicly traded company, which began with its initial public offering (IPO) in 1989. CEO Andrew Wilson, who has led EA since 2013, will continue in his role post-acquisition. Kushner expressed enthusiasm for the deal, 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 acquisition marks another significant transaction for Silver Lake, which is also involved in a joint venture with Oracle to oversee TikTok's U.S. operations. Silver Lake has previously acquired other notable technology companies, including Skype in 2009 and Dell in 2013. Going private will allow EA to restructure its operations without the pressures of meeting quarterly financial targets that often affect publicly traded companies. Despite a loyal fan base, EA's annual revenues have stagnated over the past three years, ranging from $7.4 billion to $7.6 billion. In contrast, rival Activision Blizzard was acquired by Microsoft for nearly $69 billion in 2023, intensifying competition in the gaming industry. While companies that go private often implement cost-cutting measures, including layoffs, there is no indication that EA will follow this trend. After reducing its workforce by about 5% in 2024, EA reported having 14,500 employees as of March and laid off several hundred more in May. The deal is expected to close in the first quarter of 2027, pending approval from EA shareholders. Following the announcement, EA's stock rose nearly 5%, building on a 15% increase from the previous Friday when rumors of the acquisition began to circulate.