Electronic Arts $55 Billion Buyout Marks Largest Gaming Deal in History
TL;DR
Electronic Arts' $55 billion acquisition by Silver Lake Partners and others provides private ownership advantage to restructure without public market pressures amid industry consolidation.
Silver Lake Partners, Saudi Arabia's Public Investment Fund and Affinity Partners will pay $210 per share in a leveraged buyout to take EA private.
This acquisition positions EA to focus on long-term innovation and game development, potentially improving future entertainment experiences for millions of players worldwide.
Electronic Arts' $55 billion buyout becomes the largest leveraged acquisition ever, surpassing the 2007 TXU utility deal and ending EA's 36-year public trading history.
Found this article helpful?
Share it with your network and spread the knowledge!
Electronic Arts Inc. (NASDAQ: EA), the publisher of popular gaming franchises including Madden NFL, Battlefield and The Sims, will be acquired for $55 billion in what represents the largest leveraged buyout ever attempted according to Channelchek, a Noble Financial Group digital market platform. The acquisition consortium comprising Silver Lake Partners, Saudi Arabia's Public Investment Fund and Jared Kushner's Affinity Partners will pay $210 per share to take EA private, surpassing the previous record of $32 billion set by the TXU utility buyout in 2007.
If successfully completed, this landmark transaction would conclude EA's 36-year history as a publicly traded company, which began with its initial public offering in 1989 at a split-adjusted price of 52 cents per share. The timing of this acquisition is particularly significant as EA has been confronting stagnant revenues and intensifying competitive pressures, especially following Microsoft's (NASDAQ: MSFT) $69 billion acquisition of Activision Blizzard in 2023. This deal underscores the accelerating consolidation trend across the global gaming industry and positions EA to undertake substantial restructuring initiatives under private ownership without facing the short-term performance pressures typically associated with public markets.
The full report detailing this historic acquisition is available at https://ibn.fm/zOLdl. Electronic Arts, headquartered in Redwood City, California, has established itself as a global leader in digital interactive entertainment, developing and delivering games, content and online services for internet-connected consoles, mobile devices and personal computers. In fiscal year 2025, the company reported GAAP net revenue of approximately $7.5 billion.
EA maintains a portfolio of critically acclaimed, high-quality gaming brands that includes EA SPORTS FC, Battlefield, Apex Legends, The Sims, EA SPORTS Madden NFL, EA SPORTS College Football, Need for Speed, Dragon Age, Titanfall, Plants vs. Zombies and EA SPORTS F1. Additional information about Electronic Arts and its gaming portfolio can be found at https://www.ea.com/news and https://www.ea.com/. This acquisition represents a pivotal moment in gaming industry consolidation and could potentially reshape competitive dynamics across the global interactive entertainment landscape.
Curated from InvestorBrandNetwork (IBN)
