Electronic Arts Creators of Madden and EAFC to Go Private in Unprecedented $55 Billion Buyout

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Electronic Arts Creators of Madden and EAFC to Go Private in Unprecedented $55 Billion Buyout

**EA’s Historic $55 Billion Buyout by Saudi-led Consortium Set to Reshape Gaming Industry**

EA’s Transition to Private Ownership Marks a New Era

Electronic Arts (EA), renowned for its blockbuster sports and non-sports video game franchises, is entering a new chapter as it transitions from a public to a private company. This follows a monumental $55 billion buyout by a consortium, marking one of the largest leveraged buyouts in history. The acquisition, led by Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners, is anticipated to redefine the future landscape of gaming.

Consortium Leaders and Diverse Investment Portfolios

The consortium’s composition speaks volumes about the caliber and diversity of the entities involved. PIF, known for its significant investments in multiple sectors including sports and gaming, partners with Silver Lake, a giant in the technology investment space, and Affinity Partners, an investment firm founded by Jared Kushner.

Notably, PIF, which also owns stakes in Nintendo and controls entities like LIV Golf and Premier League’s Newcastle United, brings substantial gaming industry experience to the table.

Financial Details and Impact on EA Shareholders

Shareholders stand to benefit from this deal, receiving $210 per share, a 25% premium over the market close on September 25. This premium reflects the consortium’s valuation of EA’s extensive and lucrative gaming franchises, such as EA Sports FC, Madden NFL, and Battlefield.

The total deal comprises a $36 billion equity investment complemented by $20 billion in debt financing from investment bank J.P. Morgan, painting a robust financial structure for the buyout.

Future Prospects and Strategic Vision for EA

While EA is set to become a private entity, its location and leadership remain stable. Andrew Wilson will continue to guide EA as CEO from its headquarters in Redwood City, California. Wilson’s vision emphasizes innovation, with aspirations to redefine entertainment, sports, and technology.

“Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities,” Wilson stated.

Timeline and Industry Significance

The EA board of directors has approved the buyout, with the deal expected to finalize in the first quarter of 2027. This transition will conclude EA’s 36-year history as a publicly-traded company, paving the way for a potentially transformative era in gaming.

This move reinforces Saudi Arabia’s growing influence in the gaming sector, highlighted by the PIF’s involvement in hosting the inaugural Olympic Esports Games in Riyadh in 2027.