Video-game maker Electronic Arts said Monday it is going private in an all-cash deal worth $55 billion that will pay shareholders $210 a share – the largest leveraged buyout in Wall Street history.
The company – known for games like The Sims, the Madden series of NFL games and FIFA – has agreed to be acquired by Public Investment Fund of Saudi Arabia, private-equity firm Silver Lake and Affinity Partners, which is led by Jared Kushner, President Trump’s son-in-law.
Shares in EA jumped 4.9% Monday. The stock jumped about 15% Friday, closing at $193.35 after the Wall Street Journal reported that the California-based company was nearing a deal.
That pushed the firm’s market value from roughly $43 billion to a record high of around $48 billion.
PIF is rolling over its existing 9.9% stake in the company and will be the majority investor, by far, in the new structure, sources close to the deal told CNBC’s David Faber.
“Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future,” Kushner said in a statement on Monday.
“I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games – and now enjoys them with his kids – I couldn’t be more excited about what’s ahead.”
The companies are cutting a $36 billion equity check, with $20 billion in debt financing from JPMorgan that was brought in a couple of weeks ago, sources told CNBC.
EA CEO Andrew Wilson said in a note to employees that he is “excited to continue as CEO.”
“Looking ahead, we will continue to push the boundaries of entertainment, sports and technology, unlocking new opportunities,” he said in a statement Monday.
The deal is expected to close in the first quarter of fiscal year 2027, and there is a 45-day window to allow for other proposals, according to CNBC.
Silver Lake, a tech firm that manages about $110 billion, is also a key investor in Trump’s deal to move TikTok under US control.
It also owns a stake in Unity Software, which makes video-game development software. EA has been a major Unity customer, and Unity’s former CEO, John Riccitiello, also previously served as chief executive of EA.
The deal is expected to be a record-breaking buyout. Previously, the largest leveraged buyout to date was the 2007 purchase of Texas utility TXU by a group of private equity firms for roughly $32 billion, according to Dealogic.
EA, which is based in Silicon Valley, has been making video games since 1982.
It was founded by Trip Hawkins, a former Apple employee, and received backing from venture capital investors like Kleiner Perkins and Sequoia.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
