Electronic Arts has gone private after its $55 billion buyout by Saudi Arabia’s Public Investment Fund, private equity firm Silver Lake and Jared Kushner’s Affinity Partners officially closed on Tuesday.
Under the terms of the agreement, the investor consortium acquired 100% of the company, with PIF rolling over its 9.9% stake. EA stockholders will receive $210 per share in cash — a 25% premium to its unaffected share price of $168.32 at market close on Sept. 25. It’s also a premium to its all-time high of $179.01 at market close on Aug. 14.
The transaction, which is the largest leveraged buyout in history, is funded by a combination of cash from PIF, Silver Lake and Affinity Partners, as well as the rollover of PIF’s stake — constituting an equity investment of approximately $36 billion. PIF, Silver Lake and Affinity Partners funded the equity component of the financing entirely from capital under their respective control. It also includes $20 billion in debt financing from J.P. Morgan Chase — $18 billion of which is being funded at closing.
“Having been a minority investor in the company for more than five years, we have a deep understanding of EA’s unique platform, massive global sports and gaming franchises, and iconic IP,” PIF Deputy Governor and International Investments Head Turqi Alnowaiser said. “Entertainment and sports are key areas of strategic focus for PIF, and are among the fastest growing and evolving sectors around the world. Together, the Consortium is uniquely positioned to be a long-term partner to EA’s management team in driving sustained growth and innovation for EA and the industry.”
The closing comes after the deal secured all regulatory approvals on July 30. EA will remain headquartered in Redwood City, California, and continue to be led by CEO Andrew Wilson.
“This moment recognizes the extraordinary people whose creativity, ambition and passion have made EA one of the world’s leading interactive entertainment companies,” Wilson said in a statement. “We’re entering this next chapter from a position of strength with partners who share our vision and ambition. Together, we’ll invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day.”
The video game publisher is known for franchises including “The Sims,” “Battlefield,” “Madden” and “EA Sports.” Its next release will be “Battlefield 6” on Oct. 10.
“EA’s franchises are some of the most beloved in entertainment, combining exceptional creative talent with a relentless focus on players,” Silver Lake CEO and Managing Partner Egon Durban said. “As long-term investors in technology, we admire how EA’s innovation fuels imagination and human connection. We’re proud to join with PIF and Affinity Partners to invest heavily in EA’s growth, including what AI can do to enhance game development and player experience, and excited to partner with Andrew and the EA team as they raise the bar for fans everywhere.”
“EA has created stories, characters, and communities that have become part of everyday life for hundreds of millions of people,” Kushner added. “We’re excited to support the company as it continues to reach new audiences, inspire the next generation of creators, and expand the ways people around the world connect through play.”
Shares of EA closed at $209.70 apiece and are up 54% in the past five years, 31% in the past year, 2.6% year to date, 6.5% in the past six months and 2.1% in the past month. EA’s common stock has ceased trading and will be delisted from NASDAQ.
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