Post by : Layla Badr
Electronic Arts (EA), the leading video game publisher, announced on Monday that it has agreed to be taken private in a $55 billion deal by a consortium led by private equity firm Silver Lake, Saudi Arabia’s Public Investment Fund (PIF), and Affinity Partners.
Under the agreement, EA shareholders will receive $210 per share in cash, a 25% premium compared to the company’s closing price on September 25, just before reports of the deal emerged.
The deal comes as EA prepares to launch its highly anticipated game, Battlefield 6, amid an industry where players favor established and recognizable franchises.
EA’s CEO stated that the transaction will allow the company to focus on long-term growth and innovation without the pressure of public market expectations. Officials from Silver Lake and PIF said they see significant potential in EA’s portfolio of games and live services.
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The consortium’s investment highlights growing interest from global investors in the gaming industry, which continues to expand despite broader economic uncertainties.
The deal is expected to close in 2025, pending regulatory approvals and customary closing conditions. EA will continue operating under its current management until the transaction is finalized.
EA’s stock surged in after-hours trading following the announcement, reflecting investor optimism about the premium offer and future growth prospects.
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