Electronic Arts to Be Taken Private
Electronic Arts (EA), maker of blockbuster video games like Madden NFL, Battlefield, and The Sims, is set for a historic $55 billion US buyout. The acquisition would mark the largest leveraged buyout in history, removing EA from public trading after 36 years.
Who’s Behind the Deal
The buyout involves private equity firm Silver Lake Partners, Saudi Arabia’s sovereign wealth fund PIF, and Affinity Partners, a firm led by Jared Kushner, former U.S. President Trump’s son-in-law. They will pay shareholders $210 per share, significantly higher than EA’s current market price.
EA’s Journey From Public to Private
EA’s public history began with a 1989 IPO, seven years after founder William “Trip” Hawkins launched the company. Over the decades, the company expanded globally, acquiring Burnaby, B.C.-based Distinctive Software in 1991, which became EA Vancouver. This studio produced EA Sports FC, the NHL series, and other major franchises.
The company now operates multiple studios in Canada, including Edmonton, Montreal, Toronto, and Victoria, B.C. CEO Andrew Wilson has led EA since 2013, guiding it through the rise of mobile and online gaming.
Strategic Implications
By going private, EA can restructure operations without the pressures of public market scrutiny. This flexibility may allow the company to innovate and adapt more quickly, even though its revenues have stagnated around $7.4–7.6 billion annually in recent years.
Industry observers note that private ownership often leads to cost-cutting measures and potential layoffs, although EA has not signaled additional reductions beyond the hundreds cut in 2024.
EA Among High-Profile Tech Deals
This deal is part of Silver Lake’s strategy to acquire and grow influential tech companies. Recent projects include involvement with Oracle’s TikTok U.S. oversight initiative and previous buyouts of Skype ($1.9 billion) and Dell ($24.9 billion). EA now joins that portfolio, potentially benefiting from Silver Lake’s expertise in transforming tech giants.
Competitive Landscape
EA faces pressure from rivals such as Activision Blizzard, recently acquired by Microsoft for $69 billion, and mobile gaming companies like Epic Games. Going private could allow EA to focus on long-term growth and product innovation without quarterly earnings pressures.
The Bottom Line
If completed, this $55 billion buyout marks a turning point for EA, providing resources and strategic freedom to shape its next era. Gamers and investors alike will watch closely to see how the company evolves post-privatization.
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