In a move that could reshape the gaming landscape, Electronic Arts (EA), the powerhouse publisher behind iconic franchises like "Madden NFL," "Battlefield," and "The Sims," is reportedly being acquired in a massive deal valued at $55 billion. The investor consortium includes Saudi Arabia's Public Investment Fund (PIF), private equity firm Silver Lake Partners, and Affinity Partners. The deal, which has been approved by EA's board, is expected to close in the first quarter of fiscal year 2027, pending regulatory and shareholder approvals.
The acquisition will see EA taken private after 36 years of public trading. Stockholders are expected to receive $210 per share in cash, a 25% premium over the stock's closing price of $168.32 on September 25, 2025. PIF will maintain its nearly 10% ownership by rolling those shares into the new private company. The transaction will be funded by a combination of cash from PIF, Silver Lake, and Affinity Partners, as well as debt financing.
EA CEO Andrew Wilson is expected to remain at the helm, and the company will keep its headquarters in Redwood City, California. Wilson stated that the deal will allow EA to "accelerate innovation and growth to build the future of entertainment".
This acquisition would be the largest leveraged buyout in history, surpassing the $32 billion buyout of Texas utility TXU in 2007. It also marks another significant investment by Saudi Arabia's PIF into the gaming industry. The PIF's involvement is seen as a move to diversify the country's investments and gain a foothold in the growing esports and gaming space.
The acquisition has sparked mixed reactions within the gaming community. While some see the potential for EA to benefit from the financial resources and expertise of its new owners, others have expressed concerns about the implications of Saudi Arabian ownership, given the country's human rights record. There are also concerns that the deal, which includes $20 billion in debt, could lead to cost-cutting measures and layoffs at EA. EA has already undergone several rounds of layoffs in recent years, including a 5% reduction in its workforce in 2024.
The acquisition of EA marks a significant shift in the gaming industry, which has seen increased consolidation in recent years. Microsoft's acquisition of Activision Blizzard for nearly $69 billion in 2023 set a new precedent for industry consolidation. As competition intensifies and the industry grapples with a slowdown in growth following the COVID-19 pandemic, more major deals may be on the horizon.
EA's portfolio includes some of the most popular and recognizable franchises in gaming. "Madden NFL" has been a staple of the sports gaming genre for decades, while "The Sims" has captivated players with its unique life simulation gameplay. "Battlefield" and "Apex Legends" are also major players in the first-person shooter market. The acquisition raises questions about the future direction of these franchises and whether the new ownership will prioritize innovation and quality or focus on maximizing profits.
EA has a long history of acquiring other game developers to expand its portfolio. Some notable acquisitions include PopCap Games, the creator of "Plants vs. Zombies," and Codemasters, a racing game specialist. However, EA has also faced criticism for shutting down acquired studios and stifling creativity. The fate of EA's existing studios and intellectual properties under the new ownership remains to be seen.
