Digital Arts has confirmed that it will likely be acquired by a gaggle of personal buyers together with Saudi Arabia’s sovereign wealth fund.
In a press release, EA mentioned it had “entered right into a definitive settlement to be acquired by an investor consortium comprised of PIF, Silver Lake, and Affinity Companions”.
The all-cash transaction values EA at round $55 billion, and can see the consortium buying 100% of the corporate. EA stockholders will obtain $210 per share in money, which is a 25% premium on the corporate’s final unaffected share value of $168.32, and a premium on its all-time highest share value of $179.01.
EA says the transaction, which has been authorised by its board of administrators and is anticipated to shut in Q1 of its fiscal yr 2027 (that means by the top of June 2026), “positions EA to speed up innovation and progress to construct the way forward for leisure”. The deal will see EA persevering with to be led by its present CEO Andrew Wilson, and can stay headquartered in Redwood Metropolis, California.
In a press release, Wilson mentioned: “Our artistic and passionate groups at EA have delivered extraordinary experiences for a whole bunch of thousands and thousands of followers, constructed a number of the world’s most iconic IP, and created vital worth for our enterprise. This second is a robust recognition of their outstanding work.
“Wanting forward, we’ll proceed to push the boundaries of leisure, sports activities, and expertise, unlocking new alternatives. Along with our companions, we’ll create transformative experiences to encourage generations to return. I’m extra energized than ever concerning the future we’re constructing.”
The PIF – or Public Funding Fund – is the sovereign wealth fund of Saudi Arabia and is reportedly central to Crown Prince Mohammed bin Salman’s objective of constructing the Saudi financial system much less reliant on proceeds from oil. The fund already owns billions of inventory in different online game corporations, similar to Take-Two, and owns different corporations similar to SNK.
In recent times Saudi Arabia officers have mentioned its investments within the video games trade will assist modernize the dominion, however they’ve include damaging fallout as a result of nation’s extremely criticised human rights abuses.
Notably, the crown prince has been accused by US Intelligence of ordering the brutal homicide of journalist Jamal Khashoggi. The nation has additionally has traditionally cracked down on feminine activists and LBGTQI+ rights, with authorized repercussions for LGBTQI+ people together with imprisonment, fines or the dying penalty based on Amnesty Worldwide.
Affinity Companions is an American funding agency which was shaped in 2021 by Donald Trump’s son-in-law Jared Kushner, and primarily focuses on investing in US and Israeli corporations, with most of its funding coming from the Saudi Arabian authorities.
“Digital Arts is an extraordinary firm with a world-class administration workforce and a daring imaginative and prescient for the future,” Kushner mentioned in a press release. “I’ve admired their capacity to create iconic, lasting experiences, and as somebody who grew up taking part in their video games – and now enjoys them along with his children – I couldn’t be extra enthusiastic about what’s forward.”
Silver Lake Companions is an funding fund run by Silver Lake, a US international non-public fairness movie based mostly in Silicon Valley.
“This funding embodies Silver Lake’s mission to companion with distinctive administration groups on the highest high quality corporations,” Silver Lake co-CEO and managing companion Egon Durban mentioned in a press release. “EA is a particular firm – a worldwide chief in interactive leisure, anchored by its premier sports activities franchise, with accelerating income progress and robust and scaling free money circulation.
“We’re honored to speculate and companion with Andrew [Wilson] – a unprecedented CEO who has doubled income, almost tripled EBITDA, and pushed a fivefold enhance in market cap throughout his tenure.
“The long run for EA is brilliant, we’re going to make investments closely to develop the enterprise and we’re excited to assist Andrew and the EA workforce as the corporate accelerates innovation, expands its attain worldwide, and continues to ship unimaginable experiences to gamers and followers throughout generations.”
