REDWOOD CITY, Calif. & NEW YORK--(BUSINESS WIRE)--Electronic Arts (NASDAQ: EA), EA SPORTSâ"¢ and the National Football League today announced an expanded, multi-year exclusive agreement to grow American football worldwide. This is the most comprehensive partnership to date between EA SPORTS and the NFL. Under the partnership, EA SPORTS and the NFL will continue to drive innovation and expansion of the celebrated Madden NFL franchise, which will continue as the exclusive action simulation game for. ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Credit: Pixabay/CC0 Public Domain Electronic Arts (EA) is one of the world's largest gaming companies. It has agreed to be acquired for US$55 billion in the second largest buyout in the industry's history. Under the terms, Saudi Arabia's sovereign wealth fund (a state-owned investment fund), along with private equity firms Sil ...

Core Viewpoint - Silver Lake, a tech-focused buyout group, has long desired to acquire Electronic Arts, known for its popular video game franchises such as "Battlefield" and "Madden NFL" [1] Group 1 - Silver Lake is a prominent player in the tech investment space, indicating strong interest in the gaming industry [1] - Electronic Arts is recognized for its significant contributions to the video game market through its well-established franchises [1]

Core Insights - Silver Lake has pursued Electronic Arts (EA) for years, aiming to enhance its portfolio in the gaming sector [1] - The $55 billion leveraged buyout deal, backed by Saudi Arabia's Public Investment Fund (PIF), marks a significant expansion for Silver Lake in games, sports, and entertainment [3] - PIF will become the majority shareholder of EA, while Jared Kushner's Affinity Partners will hold a 5% stake [3][4] Group 1 - The discussions for the buyout began in spring, involving Silver Lake co-CEO Egon Durban and Jared Kushner [2] - PIF previously owned nearly 10% of EA, making it a logical partner for Silver Lake in this acquisition [4] - Kushner's Affinity Partners has investments from various Middle Eastern funds, indicating strong regional financial backing [5] Group 2 - Saudi Crown Prince Mohammed bin Salman aims to position the country as a global hub for gaming and esports by 2030 [6] - The PIF has reported annual returns of 15% to 25% from investments in esports, highlighting the lucrative nature of the gaming industry [7] - The acquisition is seen as a strategic move for Saudi Arabia to gain cultural influence and talent in the gaming sector [7]

Core Viewpoint - Electronic Arts (EA) has agreed to a $55 billion buyout, marking the largest acquisition of a public company to date, with a purchase price of $210 per share, which is nearly 25% higher than its pre-announcement stock value [1] Company Overview - EA has a long history of creating popular game titles such as "The Sims" and "Madden NFL," but has faced challenges in recent years, leading to significant operational struggles [2] - The company has seen a contraction in its business, resulting in workforce reductions, studio closures, and game cancellations, particularly after a major drop in stock value following a cut in annual bookings guidance [3] Industry Context - The gaming industry experienced a boom during the pandemic, but this growth has not sustained as consumer behavior shifted back to outdoor activities [3] - The dominance of free-to-play games like "Fortnite" poses a challenge for EA, which traditionally relies on higher-priced console titles [4] Financial Implications - The buyout could generate renewed investor interest in gaming companies, as evidenced by a rise in shares of EA and other gaming firms like Take-Two and Roblox following the announcement [4] - EA's revenue is heavily reliant on live-service games, which account for three-quarters of its income, suggesting a potential shift towards more mobile and streaming-friendly game formats post-acquisition [6] Regulatory Considerations - The acquisition will require regulatory approval, with potential scrutiny regarding national security due to the involvement of Saudi Arabia's sovereign wealth fund, which has been increasing its investments in the gaming sector [4]

Core Insights - Electronic Arts (EA) will go private in a $55 billion all-cash deal, marking the largest leveraged buyout in history, with backing from Saudi Arabia's sovereign wealth fund and investment firms Silver Lake and Affinity Partners [1][2] - Shareholders will receive a premium of approximately 25% on the closing share price prior to the announcement [2] Company Performance and Future Outlook - The deal is seen as favorable for EA, as there were no other serious buyers due to a challenging antitrust environment [3] - EA's shares have recently rallied in anticipation of the upcoming release of "Battlefield 6," which is set to compete with "Grand Theft Auto VI" [6] - The company has faced challenges, including a significant drop in shares (nearly 17%) earlier this year due to a reduced fiscal-year outlook linked to its soccer franchise [4] Leadership and Strategic Direction - CEO Andrew Wilson will continue in his role post-acquisition, but will now answer to a smaller group of private owners, which may lead to different pressures compared to public shareholders [5] - The transition to private ownership may allow Wilson to focus on innovation, particularly in generative AI and expanding EA's presence in esports [13][14] Industry Context - EA's reliance on established franchises like "The Sims" and "Madden NFL" has raised concerns about its growth potential, especially as it struggles in the mobile gaming sector [12] - Analysts predict that EA's future as a publicly traded company was likely to decline, given the competitive landscape with upcoming titles from rivals [11]

NEW YORK (AP) — In what could become the largest-ever buyout funded by private equity, video game maker Electronic Arts has agreed to be acquired in a deal valued at $55 billion. Beyond the potentially record-breaking price tag, the deal could bring wider shifts in the gaming world. Electronic Arts (EA) owns popular titles like Madden NFL, Battlefield and The Sims — and going private could potentially grant the company more freedom in developing and distributing future games. Still, what its future under ...

Core Insights - Electronic Arts Inc. (EA) is a prominent player in the interactive entertainment industry, known for franchises like FIFA, Madden NFL, and The Sims [1] - EA's stock has experienced significant movements recently, particularly due to a major take-private deal valued at $55 billion [2][6] Stock Performance - On September 29, 2025, HSBC downgraded EA from a Buy to a Hold rating, with the stock priced at approximately $202.62, despite a recent rise of 4.9% to $202.85 [2] - The announcement of the take-private deal led to EA's stock reaching a record high of $203.75, marking its most substantial single-day percentage increase since 2019 [3] - Currently, EA's stock is priced at $202.51, reflecting an increase of 4.74% or $9.16, with fluctuations between a low of $202.49 and a high of $203.75 on the same day [4] Market Capitalization and Trading Volume - EA's market capitalization is approximately $50.67 billion, with a trading volume of 13.79 million shares on the day of the report [5] - The stock's performance and the take-private deal indicate a positive outlook for the company, despite the downgrade by HSBC [5]

Core Insights - Jared Kushner's private equity firm, Affinity Partners, is leading a record $55 billion takeover of Electronic Arts (EA), marking the largest debt-fueled acquisition in history [1][3] - The deal involves a consortium that includes Saudi Arabia's Public Investment Fund (PIF) and US buyout firm Silver Lake [1][3] - EA is known for popular franchises such as FIFA (now EA Sports FC), Battlefield, and The Sims, and the acquisition price includes a significant cash premium for shareholders [3][6] Company Overview - Electronic Arts (EA) is a major player in the gaming industry, recognized for its iconic franchises, including Madden NFL in the US [3] - The acquisition will see EA shareholders receiving $210 per share, which represents a 25% premium over the current share price [6] Financial Implications - The $55 billion price tag includes approximately $20 billion in debt funding from JP Morgan, setting a new record for leveraged buyouts [3][4] - This acquisition surpasses the previous record of $45 billion for the TXU takeover in 2007, highlighting a significant moment in Wall Street's history [4] Industry Context - This deal is the second-largest gaming acquisition in history, following Microsoft's $69 billion purchase of Activision Blizzard in 2023 [5] - The involvement of Saudi Arabia's PIF indicates a strategic move to diversify investments into technology and media sectors, moving away from traditional oil and gas reliance [6][7]

Core Viewpoint - Electronic Arts (EA) is set to go private in a $55 billion leveraged buyout, marking the largest in history, with the deal expected to close in the first quarter of fiscal year 2027 [1] Group 1: Buyout Details - The buyout will occur at a price of $210 per share, significantly higher than the recent trading price of $202 and the pre-announcement price of $171 [2] - Saudi Arabia's Public Investment Fund (PIF) will be the majority investor, with Silver Lake and Affinity Partners holding minority stakes [1] Group 2: Financial Performance - EA's revenue was $7.2 billion in 2022, increased to $7.6 billion in 2023, and is projected to be $7.4 billion in 2024, indicating a slowdown in growth [3] - EA's stock performance has lagged behind the S&P 500, reflecting challenges in the gaming industry post-pandemic [3] Group 3: Valuation Concerns - Analysts express concerns that EA may be undervalued in the buyout, with some suggesting a fair value of $250 per share, potentially reaching $300 if the Battlefield franchise succeeds [5] - The purchase price represents a lower EBITDA multiple compared to the Activision deal and is on par with the industry average, suggesting EA's rich intellectual property could command a higher valuation [7]