Video gammer Electronic Arts (EA) announced that it has signed a final contract to be bought by a group led by Saudi Arabia’s Public Investment Fund, Silver Lake, and Affinity Partners. The deal is worth around $55 billion in cash. The press announcement said that EA shareholders would get $210 per share, which is more than the company’s normal trading price.
The company said the buyer group will take EA private to “advance the future of entertainment,” backing investments in core franchises, live services, and technology. EA framed the deal as a way to accelerate its long-term strategy to deepen player engagement and expand how its games and services connect across platforms, as reported by the company.
Financing will include roughly $36 billion in equity from the consortium—along with a roll-over of PIF’s existing stake—and $20 billion in debt financing solely committed by JPMorgan, EA said. About $18 billion of that debt is expected to fund at closing, according to the release.
EA added that the deal needs to get the usual approvals, such as a vote by shareholders and evaluations by regulators. The business didn’t say when it would close, but it did say that it plans to keep doing business as usual while the approval process goes on.
Electronic Arts is California based most well-known names in video games . The company makes and supports games for consoles, PCs, and mobile devices. It relies on long-running franchises with enormous online communities. EA Sports FC, Madden NFL, Battlefield, Apex Legends, The Sims, Need for Speed, Titanfall, Plants vs. Zombies, and F1 are just some of the games that are getting new stories, live services, and regular updates.
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