Gaming entertainment company Electronic Arts has said in an official press release on Monday that it will be acquired by Saudi investment fund PIF, Affinity Partners, and Silver Lake in a deal that will see the investor consortium pay all cash for the video game firm at a valuation of $55 billion.
The consortium will be acquiring all 100% of the firm, with PIF rolling over its existing 9.9% stake.
As compensation, shareholders will receive $210 per share.
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Electronic Arts is known for producing the classic FIFA video game series, among other titles such as Madden, NBA, Need for Speed, Battlefield, Titanfall, and Apex Legends.
“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,” said Electronic Arts Chairman and CEO Andrew Wilson
“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,” he also said.
An initial report floated by the Wall Street Journal sent shares up by 15%. At the time, the deal was pegged at $50 billion.
“PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators,” said PIF head of investments Turqi Alnowaiser.
Under Vision 2030, Saudi Arabia is looking to develop other sectors apart from oil. Gaming forms a sizeable part of the fund’s commitments through its corporate arm Savvy Games Group, which has invested $38 billion in gaming and e-sports.
Other moves into the gaming market include the acquisition of Scopely for $4.9 billion, an 8.3% stake in Nintendo, and a goal of developing 30 competitive games and 40,000 jobs in the sector by 2030.
“The $55 billion acquisition of EA by the Public Investment Fund (PIF) is being seen as a fresh start for EA. Going private removes the short-term pressures of public markets, allowing EA to focus more on innovation, creativity, and quality across its titles. This could lead to stronger servers, more refined game features, and improved overall player experiences,” said e-sports and events consultant Charles Mathew Tharakan.
“Additionally, PIF’s ownership positions EA to pay greater attention to the MENA region. This may include deeper localization of games, investment in competitive infrastructure, and the creation of structured pathways for regional players to compete globally, helping elevate local talent onto the world stage,” he also said.
Source: Google Finance
At the time of reporting, Electronic Arts shares were trading at $202.75. Over the past 5 years, the stock’s value has grown by 57.09%.
