Electronic Arts

Electronic Arts (EA) is set to be acquired by a consortium led by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners in a $55 billion all-cash deal. Shareholders will receive $210 per share. The privatization of the gaming giant, known for franchises like Battlefield and The Sims, is expected to be one of Wall Street’s largest leveraged buyouts. The deal is subject to regulatory scrutiny and customary closing conditions, with expected closure in early next year. EA shares surged following the announcement.

Electronic Arts’ shares jumped 15% following reports of a potential $50 billion privatization deal led by investors, including Saudi Arabia’s PIF and Silver Lake. This could be the largest LBO in history, driven by EA’s valuable IP like The Sims and Madden NFL. Privatization might allow EA to pursue long-term strategic investments, moving away from quarterly earning pressures. The deal highlights Saudi Arabia’s growing gaming sector investments. The impact on EA’s future strategy, employees, and the gaming industry is uncertain.