Electronic Arts (EA) has been acquired for USD $55 billion in a major deal led by a consortium of investors, including the Saudi Arabian Public Investment Fund (PIF), Silver Lake, and Affinity Partners (the investment firm led by US President Donald Trump’s son-in-law, Jared Kushner). As part of the deal, the company is set to become private, and shareholders will be paid out at USD $210 per share in cash.
Andrew Wilson will remain CEO of EA, and the company has pledged to maintain its ‘values and [its] commitment to players and fans around the world’ regardless of this transaction.
‘We are entering a new era of opportunity,’ Wilson said in a statement to investors. ‘This is one of the largest and most significant investments ever made in the entertainment industry. Our new partners bring deep experience across sports, gaming, and entertainment. They are committed with conviction to EA – they believe in our people, our leadership, and the long-term vision we are now building together.’
‘Our mission at EA to – Inspire The World To Play – continues to guide everything we do. Our values and our commitment to players and fans around the world remain unchanged. With continued rigour and operational excellence, we can amplify the creativity of our teams, accelerate innovation, and pursue transformative opportunities that position EA to lead the future of entertainment.’
This privatisation is a notable next step for the Saudi Arabian PIF, which has been making significant investments across the games industry in the last few years. Recently, it increased investment in companies including Nintendo and Capcom. Wings of this investment fund also now outright own The King of Fighters developer SNK, and Pokemon Go maker Niantic.
The PIF already had a 10% ownership stake in EA, with this complete acquisition alongside Silver Lake and Affinity Partners representing a far more significant purchase.
What’s next for Electronic Arts?
According to additional reporting by The Financial Times, the acquisition of Electronic Arts may be motivated by something more speculative: the perceived cost-cutting potential of introducing new AI processes to cut staff, and therefore improve EA’s operating expenses. FT specifically cites possible belief that AI could accelerate programming, replace voice actors, create backdrops and other assets, and automate play testing to avoid bugs.
Reuters further notes, via industry analysts, that EA going private means that ‘long-term growth opportunities that may have been viewed as too risky or expensive as a public company’ are now possible. Those risky ambitions could explain why the company has undertaken what Reuters calls a ‘massive leveraged buyout,’ even in tough economic circumstances.
As noted by the website, these have fallen out of favour in recent years, as many majorly leveraged buyouts have ended in disaster, including bankruptcy.
For now, it’s expected the deal to acquire Electronic Arts will formally close by the first quarter of FY2027, pending regulatory approval. It’s likely we’ll hear much more about it in the coming months, as the particulars are sorted. While Andrew Wilson has claimed the company will remain unchanged after its privatisation, that remains to be seen.
Also on ScreenHub: CODE announces NZ-made games lineup for PAX Aus 2025
The New Zealand Centre of Digital Excellence (CODE) has announced the lineup of games made in Aotearoa New Zealand set to feature at its booth during PAX Aus 2025. Over the last few years, the organisation – which supports indie game development with funding, mentorship, and more – has showcased an array of shiny, upcoming titles at its booth, sharing the talents of local game developers with the PAX Aus audience.
