Electronic Arts Agrees to $55 Billion All-Cash Acquisition Deal
Following recent rumor, the electronic arts confirm the true acquisition by entering into the definitive agreement with the investor consortium of PIF, Silver Lake, and Affinity Partners in an all-cash transaction that would value $55 billion for the video game publisher.
Details of the Acquisition Agreement
The terms of the agreement state that the consortium will acquire 100% of Electronic Arts. As part of the deal, Saudi Arabia's Public Investment Fund (PIF) will roll over its existing 9.9% stake in the company.
The press release now confirms that EA's board has approved the acquisition agreement after careful consideration. Luis A. Ubiñas, Lead Independent Director of the board, said that the board "concluded that this opportunity delivers compelling value for stockholders and is in the best interests of all stakeholders."
Timeline and What Happens Next
This deal is not yet finalized. Closing is scheduled for the first quarter of fiscal 2027 pending standard closing conditions, including standard regulatory and EA shareholder approvals before the deal is finalized.
When the transaction is completed, the common stock of EA will be delisted and will not be traded in any public market, thus making the organization private.
Commentary from EA's CEO
Andrew Wilson, chairman & CEO of EA, referred to the agreement as a "testament to the incredible work of this company".
"This moment is a powerful recognition of their remarkable work," Wilson said. "Going forward, we will continue to push the frontiers of entertainment, sports, and technology to unlock new opportunities... I am more energized than ever about the future we are building."
The announcement also comes as EA prepares the launch of what would be the most awaited sixth series installment in its Battlefield franchise, next month, for PC and consoles.
