EA Games sold in record $55B private deal

Gaming giant Electronic Arts (EA) will be taken private in a $55 billion all-cash deal led by Saudi PIF, Silver Lake, and Affinity Partners. 

What’s happening: the consortium will buy 100% of EA shares, with PIF rolling over its 9.9% stake. Shareholders get $210/share in cash, a 25% premium to its last close and above EA’s all-time high.

Note: this is the largest sponsor take-private ever, topping the $32B TXU buyout in 2007. 

For context, Microsoft’s $69B purchase of Activision in 2023 was bigger, but that was an industry consolidation play, not a private equity takeout.

After effect: EA’s stock jumped 15% on Friday after the announcement, as investors cheered the premium. Analysts said the buyout will give EA more freedom to operate outside public market pressure.

The why: EA says the new backers’ networks in gaming, sports, and entertainment will help scale global reach, blend fan experiences, and invest in emerging tech. Privatisation gives management room to think long-term without Wall Street breathing down their neck.

Consequence: with hits like FIFA, Madden, Battlefield, and The Sims, EA could double down on content and distribution. Still, it’s unclear how much freedom the new owners will allow or where strategy shifts.

Big theme: the $180B+ global gaming market is a hotbed for mega deals as companies race to lock in content and audiences. 

Microsoft scooped Activision for $69B, Sony has been snapping up studios to bulk up its PlayStation lineup, and Tencent is quietly buying stakes worldwide. 

Now, with PIF leading a record $55B buyout of EA, it’s clear even sovereign funds see gaming as the next big growth frontier.