– Electronic Arts Inc. will be acquired by a consortium of PIF, Silver Lake, and Affinity Partners in an all-cash transaction valuing EA at approximately $55 billion.
– The acquisition aims to accelerate EA’s innovation and growth to build the future of entertainment.
– The Consortium will acquire 100% of EA, with PIF rolling over its existing 9.9% stake.
– EA stockholders will receive $210 per share in cash, representing:
▪️A 25% premium over EA’s unaffected share price of $168.32 (Sept 25, 2025)
▪️A premium over EA’s all-time high of $179.01 (Aug 14, 2025)
– The Consortium brings sector expertise and global networks across gaming, entertainment, and sports to create new growth opportunities and enhance fan engagement.
– The transaction is the largest all-cash sponsor take-private investment in history.
– Andrew Wilson, Chairman & CEO, Electronic Arts: “This moment is a powerful recognition of their remarkable work. Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities.”
– Turqi Alnowaiser, Deputy Governor and Head of International Investments, PIF: “PIF has demonstrated a strong commitment to these sectors, and this partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale.”
– Egon Durban, Co-CEO and Managing Partner, Silver Lake: “EA is a special company: a global leader in interactive entertainment, anchored by its premier sports franchise, with accelerating revenue growth and strong and scaling free cash flow.”
– jared kushner, Chief Executive Officer, Affinity Partners: “Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future.”
– EA’s Board of Directors concluded the transaction delivers compelling value for stockholders and supports EA’s long-term strategic goals.
– Transaction Details:
▪️Approved by EA’s Board; expected to close in Q1 FY27, subject to regulatory and stockholder approvals.
▪️Post-transaction, EA stock will no longer be publicly listed.
– Financing structure:
▪️$36 billion equity investment from PIF, Silver Lake, and Affinity Partners (including PIF rollover)
▪️$20 billion debt financing from JPMorgan Chase Bank ($18 billion expected at close)
– EA will remain headquartered in Redwood City, California, with Andrew Wilson continuing as CEO.
– Advisors:
▪️EA financial advisor: Goldman Sachs & Co. LLC
▪️EA legal advisor: Wachtell, Lipton, Rosen & Katz
▪️Consortium legal counsel: Kirkland & Ellis; specialized counsel: Gibson Dunn & Crutcher LLP
▪️Silver Lake legal counsel: Latham & Watkins and Simpson Thacher & Bartlett LLP
▪️Affinity Partners legal counsel: Sidley Austin LLP
▪️Consortium financial advisor: J.P. Morgan Securities LLC
