An Electronic Arts video game logo is seen at the Electronic Entertainment Expo.
Lucy Nicholson | Reuters
Electronic Arts said Monday that it has agreed to be acquired by the Public Investment Fund of Saudi Arabia, Silver Lake and Affinity Partners in an all-cash deal worth $55 billion.
Shareholders of the company will receive $210 per share in cash.
EA stock was up about 5% premarket. Shares gained about 15% Friday, closing at $193.35, after the Wall Street Journal reported that the company was nearing a deal to go private.
PIF is rolling over its existing 9.9% stake in the company and will be the majority shareholder in the new structure, people close to the deal told CNBC’s David Faber.
Affinity CEO Jared Kushner, who is President Donald Trump’s son-in-law, touted EA’s “bold vision for the future” in a release announcing the deal.
“I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games - and now enjoys them with his kids – I couldn’t be more excited about what’s ahead,” Kushner said in a statement.
The take-private deal for the maker of popular games like Battlefield, The Sims and the Madden series of NFL games, among others, is set to be the largest leveraged buyout in Wall Street history.
In a note to employees, EA CEO Andrew Wilson said he is “excited to continue as CEO.”
“Our new partners bring deep experience across sports, gaming, and entertainment,’ he wrote. “They are committed with conviction to EA – they believe in our people, our leadership, and the long-term vision we are now building together.”
The deal is expected to close in the first quarter of fiscal year 2027.
There is a 45-day window to allow for other proposals, people familiar with the terms of the deal told Faber.
Silver Lake, which is led by co-CEOs Egon Durban and Greg Mondre, is also one of the key investors in Trump’s push to get TikTok under U.S. control.
CNBC has reached out to EA for further comment and information on the deal.
EA 5-day stock chart.
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