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3w ago

EA Agrees to $55 Billion Take-Private Led by Saudi PIF, Silver Lake and Affinity Partners

A debt-heavy structure raises expectations of cost cuts before an expected FY2027 close.

FILE - Attendees line up at the Electronic Arts booth to play the Battlefield 3 video game at the Electronic Entertainment Expo in Los Angeles on June 8, 2011. (AP Photo/Damian Dovarganes, File)
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Overview

  • The buyers will pay $210 per share in the largest leveraged buyout on record, funded by roughly $36 billion in equity and a $20 billion debt package arranged by JPMorgan.
  • Closing requires shareholder and regulatory approvals with CEO Andrew Wilson set to remain, and PIF’s involvement expected to draw governance and data oversight scrutiny.
  • An internal FAQ tells employees there will be no immediate changes to jobs or teams, though it stops short of longer-term guarantees.
  • Analysts expect EA to double down on live services and sports franchises, reduce riskier projects, and consider selling non-core studios or dormant IP to service the new debt.
  • Former BioWare executive Mark Darrah and anonymous staff warn layoffs and consolidations are likely, with BioWare viewed as especially vulnerable after recent underperformance.