Electronic Arts to be Privatized in $55bn Deal

Electronic Arts (EA), the company behind Battlefield, FC 26, and The Sims, is set to be acquired in a $55 billion (£41 billion) deal, making it the most expensive acquisition of a public company going private.

The buyout will see private equity firm Silver Lake Partners, Saudi Arabia's Public Investment Fund (PIF), and Affinity Partners pay EA shareholders $210 per share, representing a 25% premium on the company's closing share price before the deal was announced.

This acquisition surpasses the previous record of $32 billion paid to take Texas utility TXU private in 2007, with around $20 billion of the purchase price coming from financing. The deal reflects a resurgence in global dealmaking amid lower central bank interest rates reducing borrowing costs.

The agreement signals confidence in the recovery of popular game franchises like Battlefield, FC 26, and The Sims, following a decline in spending by gamers during the post-pandemic period.

EA's sports portfolio has been a strong performer, driven by its global popularity and resilient in-game spending. The acquisition is contingent on approval from shareholders and regulatory authorities.