Electronic Arts, the company behind popular video games like Madden NFL, Battlefield, and The Sims, is set to be acquired for $55 billion in what would be the largest leveraged buyout ever. Under the deal announced on Monday, private equity firm Silver Lake Partners, Saudi Arabia’s sovereign wealth fund PIF, and Affinity Partners—a firm led by Donald Trump’s son-in-law Jared Kushner—will pay EA shareholders $210 per share, taking the company private.
This transaction surpasses the previous record of $32 billion paid for Texas utility TXU in 2007. If completed, it will conclude EA’s 36-year run as a public company, which started with its shares trading at a split-adjusted $0.52 on its first day. The company was founded by former Apple employee William “Trip” Hawkins, who was inspired by playing Strat-O-Matic baseball and football games in the 1960s. EA has been led by CEO Andrew Wilson since 2013.
This is Silver Lake’s second major deal involving a tech company with a dedicated fan base recently. The firm is also part of a joint venture with Oracle to oversee TikTok’s U.S. operations, though details of that arrangement are still emerging. Silver Lake has a history of buying prominent tech companies, including Skype for $1.9 billion in 2009 and Dell for $24.9 billion in 2013, with Dell later returning to public markets in 2018.
Going private will allow EA to restructure without the pressure to meet short-term financial targets that public companies often face. Despite a loyal fan base, EA’s annual revenue has remained around $7.4 to $7.6 billion over the past three years. Meanwhile, competitor Activision Blizzard was acquired by Microsoft for nearly $69 billion in 2023, and mobile game rivals like Epic Games have increased competition.
While companies taken private often cut costs through layoffs, there’s no clear sign of that happening at EA. The company reduced its workforce by 5% in 2024, ending March with 14,500 employees and letting go of several hundred more in May.
Frequently Asked Questions
Of course Here is a list of helpful and clear FAQs about Electronic Arts potentially going private in a 55 billion deal
General Beginner Questions
1 What does it mean for a company to go private
It means the companys stock is removed from public stock exchanges It will no longer be owned by public shareholders and will instead be owned by a private group such as a private equity firm a group of investors or a single entity
2 Who is buying EA
While this is a hypothetical scenario for this FAQ in a deal of this size the buyer would likely be a consortium of large private equity firms or a major technology company with significant capital
3 Why would EA want to go private
The main reasons often include wanting to make longterm strategic decisions without the pressure of reporting quarterly earnings to public shareholders This can allow for more significant overhauls of game development pipelines or business models away from the constant scrutiny of the stock market
4 What happens to my EA stock if this happens
If the deal is finalized you would receive a specified amount of cash for each share of EA stock you own The buying group sets this price which in this case would be based on the massive 55 billion valuation
5 Will this affect the games Im currently playing like Apex Legends or FC 24
In the short term no You will still be able to play your games access online services and make ingame purchases as usual The longterm impact would depend on the new owners strategy
Advanced Strategic Questions
6 Why is this considered the largest deal of its kind
A 55 billion leveraged buyout would be the largest in the technology sector and one of the largest in history surpassing other major deals It signifies an enormous bet on the future value of the video game industry and EAs specific assets
7 What are the potential benefits for EA as a private company
LongTerm Focus Freedom to invest in risky innovative new IPs or technologies without fearing a stock price drop from a single failed project
Operational Flexibility Ability to restructure departments shift business models or make acquisitions more swiftly and discreetly
