EA Acquired in $55B Deal, Gaming Industry's Largest Buyout
In a monumental deal, Electronic Arts (EA) has agreed to be acquired by a consortium led by private equity firm Silver Lake and the Saudi Arabian sovereign wealth fund. The acquisition, valued at $55 billion, is the largest private equity buyout and subsequent delisting of a company, surpassing the 2007 record. EA shareholders will receive $210 per share, marking a 20% gain from the previous closing price.
EA's shares soared to an all-time high of $203.75 on the Wall Street following the announcement. The acquisition comes amidst rising development costs and delays in major title releases within the gaming industry. Despite recent setbacks, including disappointing guidance due to consumer spending hesitation and 'Battlefield 5' failing to meet expectations, EA remains confident in its upcoming releases. 'Battlefield 6' is set to launch soon, with other titles expected to generate over $2 billion combined by 2028.
The acquisition consortium includes Silver Lake, the Saudi Arabian Public Investment Fund (PIF), and Jared Kushner's investment firm Affinity Partners. EA is set to be delisted from the stock exchange post-acquisition. Meanwhile, some Ubisoft shareholders are pushing for a sale of their own company.
The acquisition of EA for $55 billion is a significant milestone in the gaming industry. While analysts at Benchmark consider the offer price attractive, they note that EA is worth significantly more. The deal is expected to close in the summer of 2023, subject to regulatory approvals and other closing conditions.
Read also:
- Web3 gaming platform, Pixelverse, debuts on Base and Farcaster networks
- Goodyear in 2025: Advancement in Total Mobility through the Launch of Kmax Gen-3 by Goodyear
- Boston Metal pioneers route to commercial production for eco-friendly steel method
- Electric SUV Showdown: Vinfast VF6 or MG Windsor EV - Your Choice Revealed
