By Andy Marston, Sports Pundit
Electronic Arts (EA) has entered into a definitive agreement to be acquired in an all-cash transaction valuing the company at $55 billion (£40 billion), the largest sponsor-led take-private in history.
The investor consortium includes Saudi Arabia’s Public Investment Fund (PIF), Silver Lake and Affinity Partners, with PIF rolling over its existing 9.9% stake. Shareholders will receive $210 per share in cash, a 25% premium to the unaffected share price.
The deal is expected to close in Q1 FY27 pending shareholder and regulatory approval. EA will be delisted but remain headquartered in Redwood City under CEO Andrew Wilson.
The $36bn equity investment is supported by the consortium, alongside $20bn of debt financing led by JPMorgan Chase.
PIF has been steadily building its gaming and esports portfolio with stakes in Nintendo, Take-Two and Activision Blizzard, ownership of ESL and FACEIT via Savvy Games Group, and the annual Esports World Cup in Riyadh.
Why It Matters:
For Saudi Arabia, acquiring EA fast-tracks Vision 2030, reducing reliance on oil while strengthening its domestic gaming ecosystem and extending global soft power through sport and entertainment.
For EA, going private removes short-term public market pressure, enabling longer-term bets on new IP, AI-driven design, and digital–physical fan experiences. Backed by substantial capital, EA can pursue ambitious growth in a way that may have been harder as a listed company. They are also betting that AI will fuel an entertainment boom, cutting production costs while creating richer, more scalable gaming experiences.
These points are well documented by a number of sources across the industry. However, what is less discussed is what this deal could signal more broadly.
Private equity firms are sitting on a reported $3 trillion in dry powder. With inflation
and higher rates slowing M&A, pressure to deploy is intensifying. EA’s take-private may prove the first of many bold moves, as firms get more creative in deploying capital over the next 12 months. This is something that Scott Galloway predicted at the start of 2025.
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