EA’s $55bn buyout expected to close on 4 August
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Electronic Arts expects its $55 billion go-private transaction to complete at the close of trading on 4 August, having secured all required regulatory approvals. The deal would take one of the world’s largest video game publishers off the stock market, subject only to the remaining customary closing conditions.
The all-cash acquisition was announced last September by Saudi Arabia’s Public Investment Fund, Silver Lake and Jared Kushner’s Affinity Partners, and was delayed beyond its original 30 June target by regulatory reviews. EA is expected to remain headquartered in Redwood City, California, with Andrew Wilson continuing as chief executive; its portfolio includes Battlefield, The Sims, EA Sports FC and Apex Legends.
- EA expects its $55bn private sale to close on 4 August.
- All required regulatory approvals have been obtained.
- EA will retain its headquarters and chief executive.
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Electronic Arts, known as EA, is one of the world’s biggest video game companies. It publishes and develops games including EA Sports FC, The Sims, Battlefield and Apex Legends, selling games and related content to players around the world.
A go-private deal means a company’s shares are no longer traded on a public stock market. Instead, it is owned by a smaller group of investors, who can make longer-term decisions without reporting to public shareholders in the same way.
The buyers include Saudi Arabia’s state investment fund, the private equity firm Silver Lake and Affinity Partners, an investment firm founded by Jared Kushner. The deal matters because of EA’s size in the games industry and because it would give the investor group control of a major US entertainment company.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters argue that the buyout gives EA patient, well-capitalised owners able to invest in long development cycles, new technology and creative risk without the constant pressure of quarterly market expectations. They may also say the consortium’s resources and stated continuity in headquarters and leadership offer stability, while regulatory approval indicates the transaction has met the relevant legal tests.
The case against
Critics argue that taking a major games publisher private reduces public-market transparency and may concentrate influence over an important cultural business in the hands of a small investor group, including a foreign sovereign wealth fund. They may worry that debt, return expectations or strategic interests could ultimately outweigh the needs of players, employees and independent creative teams, even if EA’s leadership and location initially remain unchanged.
More coverage
- GamesRadar+ — EA's $55 billion buyout is officially complete next week
- GameSpot — EA Says Saudi Takeover Deal Is Set To Close Next Week
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Originally published by Variety as “Electronic Arts Set to Close $55 Billion Go-Private Deal Next Week”.