Electronic Arts Inc. (NASDAQ: EA) has announced that it has entered into a definitive agreement to be acquired by an investor consortium comprised of PIF, Silver Lake, and Affinity Partners in an all-cash transaction that values EA at an enterprise value of approximately $55 billion. This acquisition represents the largest all-cash sponsor take-private investment in history.
Under the terms of the agreement, the consortium will acquire 100% of EA, with PIF rolling over its existing 9.9% stake in the company. EA stockholders will receive $210 per share in cash, representing a 25% premium to EA’s unaffected share price of $168.32 at market close on September 25, 2025.
Andrew Wilson, Chairman & CEO of Electronic Arts, stated that the transaction is a powerful recognition of the remarkable work of EA's creative and passionate teams. He emphasized that EA will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. The company aims to create transformative experiences to inspire future generations.
The transaction, subject to customary closing conditions and regulatory approvals, is expected to close in Q1 FY27. Following the completion of the transaction, EA’s common stock will no longer be listed on any public market.
In fiscal year 2025, EA posted GAAP net revenue of approximately $7.5 billion. The company is recognized for a portfolio of critically acclaimed, high-quality brands such as EA Sports FC™, Battlefield™, Apex Legends™, The Sims™, EA Sports™ Madden NFL, EA Sports™ College Football, Need for Speed™, Dragon Age™, Titanfall™, Plants vs. Zombies™, and EA Sports F1®.
This acquisition marks a significant development in the gaming and entertainment industry, and it positions EA to accelerate innovation and growth under the ownership of the investor consortium. The market has reacted to these announcements by moving the company's shares 4.58% to a price of $202.20. If you want to know more, read the company's complete 8-K report here.
