EA, a video game company known for games like FC 2025, The Sims, Battlefield, and Need for Speed, revealed on Monday that it will be purchased by a consortium supported by Saudi Arabia, in a deal worth $55 billion.
The Silver Lake manager will lead the transaction with the involvement of Jared Kushner, who is an advisor to U.S. President Donald Trump and his son-in-law, along with Affinity Partners and the Saudi sovereign fund PIF.
The company’s shares are valued at $210 each, representing a 25% increase from last Thursday’s closing price.
Biggest leveraged acquisition ever
Analysts predict that the deal is poised to become the biggest leveraged buyout in history, surpassing the $45 billion acquisition of Texan energy company TXU in 2007, which held the previous record for this type of transaction.
After the announcement, Electronic Arts’ shares surged by 5.5% in the Nasdaq futures market.
Capital lock means restricting access to or control over capital.
The proposal includes closing the developer’s capital, a move that is seen as unusual since the global financial crisis of 2008-2009, when such large-scale operations were scarce due to numerous failures.
The group plans to utilize a mix of their own funds from Silver Lake, Affinity Partners, and PIF, along with the existing investment from the Saudi sovereign wealth fund in the firm.
The transaction is expected to be finalized in the first quarter of the fiscal year 2027.
The announcement comes as EA gets ready to release Battlefield 6, the anticipated war simulation series, along with other popular games like The Sims and FC.
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