In a groundbreaking announcement

Electronic Arts (EA), the legendary publisher behind franchises such as The Sims, Battlefield, FIFA and Madden, is about to be acquired in a massive deal. The buyout would value the company at around $55 billion, and would result in its delisting from the stock market (barring unforeseen circumstances). The details of the consortium, the financing, and the implications deserve a closer look.

The structure of the deal

The offer consists of a cash buyout, approved by EA’s board of directors, pending regulatory approvals and shareholder consent.

The consortium of buyers includes several major players:

• Silver Lake (technology-focused investment fund)
• Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, already a significant EA shareholder
• Affinity Partners, led by Jared Kushner, the son-in-law of Donald Trump

The proposed financial structure: around $36 billion in equity and $20 billion in debt, arranged notably through JPMorgan Chase.

What it means for EA and its shareholders

Current shareholders would receive $210 per share in cash, representing a 25% premium compared to EA’s price before buyout rumors surfaced. Once completed, EA would no longer be publicly traded, becoming a private company, and therefore free from the constant scrutiny of public markets.

Even after the acquisition, EA would keep its headquarters in Redwood City, California, and Andrew Wilson would remain CEO.

Stakes & risks

This $55 billion acquisition would be one of the largest ever recorded in the industry, particularly among video game publishers. For reference, Microsoft’s acquisition of Activision in 2023 totaled $75.4 billion.

Some analysts believe the offer, though generous, might undervalue EA’s long-term potential, especially with upcoming major releases like Battlefield 6. The buyout still faces multiple hurdles: regulatory approval and a shareholder vote. Without these, the deal could fall through.

Strategy and future implications

This event marks a major strategic shift for EA: going private could grant the company greater freedom to invest, restructure, or take long-term risks, without constantly needing to reassure markets and shareholders. The significant involvement of a sovereign fund like the Saudi Public Investment Fund (PIF) highlights the growing influence of non-traditional players in entertainment and gaming.

Electronic Arts, a key figure in our passion

Let’s be honest — in recent years, EA’s releases have been hit or miss, alternating between excellent titles and more questionable choices. Take Battlefield, for example: the series has delivered several memorable entries, only to disappoint with Battlefield 2042, a surprising episode lacking the soul and authenticity that once defined the franchise. The same can be said for Mass Effect, the iconic space opera, which concluded with Andromeda, well below expectations.

On the other hand, EA has also produced critically acclaimed titles like the Star Wars games (Battlefront and the Jedi saga), or the award-winning It Takes Two, praised for its brilliant game design and original storytelling.

And for retrogaming fans like us, it’s hard not to remember the countless titles that defined our youth: The Sims, SimCity, Command & Conquer, Need for Speed, FIFA, Medal of Honor, Road Rash… and many more!