It’s the end of an era as EA has officially confirmed that it will be sold in a deal worth $55 billion, and the new owners are reportedly already planning big changes. News broke last week that the buyout might be announced this week, and EA wasted no time in making the announcement yesterday. Electronic Arts Chairman and CEO Andrew Wilson shared his excitement regarding the deal, which sees Saudi Arabia’s PIF (who already owns ~10%), Silver Lake, and Affinity Partners take ownership, in the following statement.
“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work, Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.”
– Andrew Wilson, EA Chairman & CEO
The deal is set to close in Q1 F27 pending regulatory approvals and customary closing conditions, at which point the company will officially go private. PIF will rollover its stake into the agreement, whereby 100% of EA will be bought out. EA shareholders will receive $210 per share, representing a 25% premium of the 9/25/2025 share price of $168.32. JP Morgan is providing $20 billion in financing, with $18 due at completion of the buyout. EA is said to retain its Redwood, CA headquarters with Andrew Wilson continuing to helm the company.
“The transaction represents the largest all-cash sponsor take-private investment in history, with the Consortium partnering closely with EA to enable the Company to move faster and unlock new opportunities on a global stage.”
– EA
AI Rising
Nearly as fast as Electronic Arts published its press release, a report by The Financial Times revealed another forthcoming detail. Evidently, EA’s new owners already have a strategy in place on how to reduce operating costs, namely by using AI. Per the report, AI will be used to “boost EA’s profits in the coming years” and “to manage a large debt load on a company that historically carried limited net debt.”
What this exactly means remains unknown, but one possibility exists that AI could be heavily leaned upon for game development. Doing so could potentially reduce costs drastically by not having to pay human developers and/or actors, something many in the gaming industry have already been expressing concerns over. Meanwhile, EA’s execs are celebrating the deal, and there’s sure to be more news forthcoming regarding the game publisher’s future.
“The Board carefully evaluated this opportunity and concluded it delivers compelling value for stockholders and is in the best interests of all stakeholders,”
-Luis A. Ubiñas, Lead Independent Director of EA’s Board of Directors