Saudi Arabia, Jared Kushner Join $55B EA Buyout, Acquire Madden
▼ Summary
– The transaction was approved by EA’s Board of Directors and is expected to close in Q1 FY27, pending customary closing conditions and stockholder approval.
– Following the transaction’s completion, EA’s common stock will be delisted from all public markets.
– The deal involves approximately $36 billion in equity investment from PIF, Silver Lake, and Affinity Partners, including PIF’s existing stake roll-over.
– JPMorgan Chase Bank, N.A. has committed $20 billion in debt financing, with $18 billion expected at closing.
– Each of the equity investors (PIF, Silver Lake, and Affinity Partners) will fund their portion entirely from their own capital.
A landmark deal has been finalized, marking one of the largest acquisitions in the video game industry’s history. Electronic Arts (EA), the powerhouse behind globally recognized franchises like Madden NFL, is set to become a privately held company. A consortium led by Saudi Arabia’s Public Investment Fund (PIF), in partnership with private equity firms Silver Lake and Affinity Partners, has successfully negotiated a $55 billion buyout. This strategic move will see the iconic game publisher delisted from public stock exchanges.
The transaction received unanimous approval from EA’s Board of Directors and is projected to be completed during the first quarter of the 2027 fiscal year. Finalization remains contingent on standard closing procedures, which involve securing necessary regulatory clearances and obtaining the final approval from EA’s stockholders. Once the deal is officially closed, EA’s common stock will cease to be traded on any public market, transitioning the company into private ownership.
Financing for this massive acquisition is structured through a combination of equity and debt. The equity portion, totaling approximately $36 billion, will be supplied by cash investments from PIF, Silver Lake, and Affinity Partners. This will be supplemented by the roll-over of PIF’s pre-existing stake in EA. JPMorgan Chase Bank has committed to providing the entire $20 billion debt financing package, with an anticipated $18 billion of that sum being disbursed at the time of the deal’s closure. Each of the primary investing entities has confirmed they will fund their respective equity contributions entirely from capital under their direct management and control.
(Source: The Verge)
