Video game manufacturer Electronic Arts is transitioning to a private entity through a $55 billion agreement, financed by Saudi Arabia alongside an investment firm supported by Jared Kushner. The company, known for its successful franchises such as “Madden NFL,” “The Sims,” and “Battlefield,” disclosed on Monday that the consortium is spearheaded by Saudi Arabia’s Public Investment Fund, Silver Lake, and Kushner’s Affinity Partners.
Shareholders are receiving $210 per share, marking this as the largest buyout on record. Shares of EA experienced an increase of approximately 5% in premarket trading. The acquisition reflects a 25% premium over Friday’s closing price preceding the buyout reports. “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,” stated EA CEO Andrew Wilson.
Kushner expressed his admiration for EA’s “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.” The transaction is anticipated to finalize in the initial quarter of fiscal year 2027, pending regulatory approval. Founded in 1982, EA boasts a diverse portfolio of popular titles, spanning genres from sports to first-person shooters, highlighted by the anticipated launch of “Battlefield 6.”
In the previous year, the company implemented a reduction of 5% in its workforce, aligning itself with other firms in the video game sector that have similarly decreased their employee numbers following a surge in demand during the peak of Covid-19 and evolving consumer preferences.