Video game giant Electronic Arts on Monday said it will be taken private through a record $55 billion (roughly Rs. 487,899 crore) leveraged buyout from a consortium comprised of private equity firm Silver Lake, Saudi Arabia’s Public Investment Fund and Jared Kushner’s Affinity Partners.
The deal for the “Battlefield” maker underscores how deep-pocketed investors are betting on the enduring value of popular gaming franchises as the gaming industry recovers from a long slump.
It would be the largest leveraged buyout on record, surpassing TXU Energy’s 2007 acquisition and other landmark deals of the decade, including Toys “R” Us and Hertz, and comes as global deal volumes rebound as lower borrowing costs revive interest in big deals.
Under the deal, EA shareholders will receive $210 in cash per share, a 25% premium over the closing price before the deal was reported on September 25.
Reuters calculated the equity value of the deal at $52.54 billion.
The private acquisition comes at a critical time for EA, which is leaning heavily on its core sports portfolio and action-shooter intellectual property to battle a sluggish video game industry as gamers become picky about spending.
Electronic Arts is gearing up to launch the highly anticipated Battlefield 6, in an industry where gamers insist on tried and true titles.
Benchmark analysts said: “While the $210 per share offer may look attractive… we believe it is well below the company’s intrinsic value. With Battlefield 6 on the horizon and a pipeline that could add more than $2 billion in incremental bookings by fiscal 2028, EA’s true profitability is only beginning to emerge.”
The company’s sports portfolio has stood out for more than a decade due to its global visibility and consistent recurring revenue, while a strong in-game spending model remains key to the franchise’s longevity.
Electronic Arts said the deal includes approximately $36 billion in equity investment and $20 billion in debt financing committed by JPMorgan Chase, of which $18 billion is expected to be raised at closing.
The transaction is expected to close in the first quarter of fiscal 2027 and will be funded by cash from PIF, Silver Lake and Affinity Partners, as well as the rollover of PIF’s existing EA shares.
EA would have to pay a $1 billion fee if it terminates the merger due to board changes, accepts a higher bid or pursues another deal within a year of shareholder rejection.
If regulatory delays result in completion later than September 28, 2026, or if the agreement is breached, the consortium will be liable for an equal amount.
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