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EA bought by private investors for $55 billion USD

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Bristol, UK
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Electronic Arts (EA) has agreed to a new $55 billion USD acquisition deal with a consortium of investors. It’s the second most expensive gaming purchase of all time, only beaten by Microsoft’s buyout of Activision Blizzard for $75.4 billion USD. 

Electronic Art (EA) has been purchased by a consortium of investors, including Saudi Arabia’s Public Investment Fund (PIF), investment firm Silver Lake, and American finance organisation Affinity Partners.

The buyout is set to be worth $55 billion USD.

It is the second biggest gaming acquisition of all time, and follows on from Microsoft’s purchase of Activision Blizzard for an eye-watering $75.4 billion USD in 2022.

As a result, EA will now become privately-owned and will not be traded on any stock exchange. All public shares are set to be purchased with an additional 25% premium on EA’s market value.

The company confirmed that its CEO, Andrew Wilson, will remain in his position after the deal is finalised. He commented that the move was part of a long-term effort to ‘create transformative experiences [that] inspire generations to come.’

Saudi Arabia’s involvement in the acquisition will be a massive step forward for the country, which has been steadily ramping up its influence within the industry.

As the BBC points out, Saudi Arabia’s investment fund offered $3.5 billion USD for Niantic, the mobile gaming company responsible for Pokemon Go. It’s also dipped its toes into competitive gaming and will be hosting the 2027 Olympic Esports Games.

EA is one of the biggest publishers in the world, boasting high-earning franchises such as EAFC (formally known as FIFA), The Sims, Battlefield, Madden NFL and much more. It’s also known for housing licensed games and movie tie-ins, having released titles for big brands like Harry Potter and Star Wars.

Interestingly, $20 billion USD of the purchase will be covered by debt financing from JPMorgan Chase Bank, which means that the acquisition will need to earn serious cash at a speedy rate in order to cover costs. Reports indicate that this is the largest leveraged buyout since records began.

The initial response from gamers and industry experts has not been particularly glowing.

There is speculation that the deal could be used as a way to leverage debt and essentially gut EA as a large-scale publisher, which could mean worse gaming experiences and far greater emphasis on micro-transactions and other monetisation practices.

It’s worth mentioning that EA doesn’t have the best reputation amongst gamers as it is. The publisher is known for using egregious tactics to squeeze cash out of consumers as much as possible. It also has a lengthy history of buying up indie studios only to close them years or even months later.

Understandably, many are concerned that the move could pivot the company away from consumer-friendly ideals even further and leave regular players worse off. As The Verge points out, leveraged buyouts often lead to layoffs, smaller budgets and fewer creative risks, which could be a net negative for the industry.

In an official statement on its website, CEO Andrew Wilson said, ‘this transaction is in the best interests of our company and our stakeholders.’ He added that, ‘our commitment to players and fans around the world remain unchanged.’

Time will tell whether the move provides genuine, positive change within the industry. It seems unlikely, particularly given the company in question, but we’ll remain optimistic nonetheless.

Senior Writer Bristol, UK

I’m Charlie (He/Him), a Senior Writer at Thred. I was previously the Editor at Thred before moving to Bristol in 2024. As a music and gaming enthusiast, I’m a nerd for pop culture. You can find me curating playlists, designing article headline images, and sipping cider on a Thursday. Follow me on LinkedIn and drop me some ideas/feedback via email.

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