Confirmed - Electronic Arts (EA) sold off to investors including Saudi Arabia's Public Investment Fund

Well, there it is. It's now official after earlier reports that EA (Electronic Arts) is being sold off to an investor consortium.

EA put up a press release going over some of the details including a confirmation that the new owners will include PIF (Public Investment Fund - Saudi Arabia), Silver Lake, and Affinity Partners (formed by Jared Kushner). In the press release they noted it's an "all-cash transaction" to the value of approximately $55 billion, which will result in them taking 100% of EA.

While the move has been approved by EA's Board of Directors, it isn't yet a complete and finished deal. They still have to go through the normal regulatory approvals process and gain approval from EA stockholders on the deal. They expect it to be all finalised in the first quarter of their 2027 financial year. From the filings EA will have to pay a $1 billion termination fee if the deal falls through either due to the changes in the decision from their board, a better deal was found or stock holders revolt on it.

When the move is done their HQ will remain in California and Andrew Wilson will stay on as CEO.

This, according to the PR, makes it the "largest all-cash sponsor take-private investment in history". It really is huge, and considering how big EA actually are with all their controlled franchises it's a massive sweeping change for the games industry. Around $36 billion of it is from the equity investment, while $20 billion is from debt financing — which is an eye watering amount so brace for some cost-cutting to come (and layoffs probably).

EA controls the likes of The Sims, Battlefield, Command & Conquer, Apex Legends, Titanfall, Star Wars Jedi series, Mass Effect, Dragon Age, skate., EA Sports FC and more.

Here's all the fancy-worded statements from the PR:

“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work,” said Andrew Wilson, Chairman & CEO of Electronic Arts. “Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.”

“PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators,” said Turqi Alnowaiser, Deputy Governor and Head of International Investments at 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.”

“This investment embodies Silver Lake’s mission to partner with exceptional management teams at the highest quality companies. 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. We are honored to invest and partner with Andrew – an extraordinary CEO who has doubled revenue, nearly tripled EBITDA, and driven a fivefold increase in market cap during his tenure,” said Egon Durban, Co-CEO and Managing Partner of Silver Lake. “The future for EA is bright, we are going to invest heavily to grow the business and we are excited to support Andrew and the EA team as the company accelerates innovation, expands its reach worldwide, and continues to deliver incredible experiences to players and fans across generations.”

“Electronic Arts ​is ​an ​extraordinary ​company with a ​world-class ​management ​team and a bold vision ​for ​the ​future. ​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,” said Jared Kushner, Chief Executive Officer of Affinity Partners.

“The Board carefully evaluated this opportunity and concluded it delivers compelling value for stockholders and is in the best interests of all stakeholders,” said Luis A. Ubiñas, Lead Independent Director of EA’s Board of Directors. “We are pleased that this transaction delivers immediate and certain cash value to our stockholders while strengthening EA’s ability to continue building the communities and experiences that define the future of entertainment.”

Source: EA Press