Electronic Arts is set to be taken private in a deal that could reshape the gaming industry. The publisher of Madden, The Sims, and Battlefield has agreed to a $55 billion acquisition led by Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners. If completed, it would be the largest private equity buyout ever.
The deal, announced on September 29, will give shareholders $210 per share in cash, roughly 25 percent higher than EA’s stock price before rumors surfaced. PIF already owns nearly 10 percent of EA and will roll that stake into the takeover. To finance the agreement, the group will contribute around $36 billion in equity, with another $20 billion coming from debt arranged by JPMorgan.
EA’s board has signed off, and the company expects the transaction to close in the first quarter of fiscal 2027, pending shareholder and regulatory approval. Once the deal is finalized, EA will be removed from public markets and continue to operate as a private company from its Redwood City headquarters. Current CEO Andrew Wilson is expected to stay in place.
What the Deal Means
This acquisition comes at a critical time for EA. The company has faced slower growth, layoffs, and the cancellation of several projects, including a Titanfall spinoff. Competition in free-to-play and cloud gaming has also tightened. Moving into private ownership could allow EA to invest and restructure without the pressure of quarterly earnings reports.
For the investors, EA’s portfolio remains a major draw. Madden, FIFA successor EA Sports FC, Battlefield, and The Sims generate reliable revenue from both new releases and ongoing in-game purchases. PIF’s involvement also reflects its wider push into media, sports, and entertainment as part of Saudi Arabia’s long-term diversification strategy.
Still, questions remain. Analysts point out that the offered price may not reflect the full value of EA’s pipeline, particularly with a new Battlefield on the horizon. Regulators in the United States and abroad are likely to scrutinize the deal closely, given its scale and the foreign investment involved.
What Comes Next
If the acquisition closes smoothly, EA will emerge as a privately held company with new financial backing but also a significant debt load. How that debt is managed, and whether the new owners cut costs or invest more heavily in development, will be closely watched by both employees and players.
The outcome could influence not just EA’s future but the gaming industry itself, as one of the industry’s biggest publishers shifts into private hands.
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No way brothers!
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Wow insane deal there
Big move for EA – going private might give them breathing room, but I’m curious how it will shape their games.
I’ve been following your site for a while, and this article is one of my favorites.
Concise and informative. I learned something new today.
Please don’t get my hopes up. Free Dead Space and Bioware from their shackles!
Who is investing 🤔 I wonder?
I appreciate the real-world examples you included — they made the concept click.
This is something I’ll be interested to keep an eye on.