Last week, a report came out regarding a deal that might see EA become a private entity again. Today, the games publisher confirmed that a group of investors has acquired 100% of the company, with Saudi Arabia’s PIF, the private equity firm Silver Lake, and Affinity Partners being involved. Regarding the deal, EA said that it will help "accelerate innovation and growth to build the future of entertainment."
Per the deal"s terms, EA stockholders will receive $210 per share in cash, marking it as a 25% premium on the company’s last unaffected share price of $168.32. It called this a premium on the all-time high share price of $179.01.
"Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work," said Andrew Wilson, Chairman & CEO of Electronic Arts, about the deal. "Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building."
PIF, the Saudi Arabian entity, has been buying portions of major gaming companies for years now. Prior to this record-breaking deal, it already owned 9.9% of EA, and prior to Microsoft"s buyout, it also owned parts of Activision Blizzard. Currently, PIF and the Savvy Games Group arm hold stakes in games companies such as Take-Two, Nintendo, Capcom, Nexon, Embracer, and others.
"Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future. I"ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games - and now enjoys them with his kids - I couldn"t be more excited about what"s ahead,” added Jared Kushner, Chief Executive Officer of Affinity Partners.
EA was founded in 1982 before going public in 1990. Since then, the company has been known for its yearly-releasing sports games like EA SPORTS FC (formerly FIFA), Madden NFL, and NHL. Outside of sports, The Sims, Apex Legends, Mass Effect, Need for Speed, and Battlefield series are also a part of the major publisher, which now has a focus on live service experiences.