Electronic Arts Confirms $55 Billion Go-Private LBO By Private Equity Giants

The Wall Street Journal’s late Friday afternoon report, detailing the largest leveraged buyout (LBO) ever, which would take Electronic Arts (EA) private by private-equity giants, was confirmed by the video game company on Monday morning.

This article was originally published by ZeroHedge.

Here is the deal overview for the gaming company that owns EA Sports FC, Madden, and The Sims:

• Electronic Arts (NASDAQ: EA) entered into a definitive agreement to be acquired by a consortium of Saudi Arabia’s PIF, Silver Lake, and Affinity Partners. 
• The transaction values EA at $55 billion enterprise value, the largest all-cash sponsor take-private in history.
• Shareholders will receive $210 per share in cash, a 25% premium to EA’s last unaffected price ($168.32) and above its all-time high ($179.01).
• PIF will roll over its existing 9.9% stake into the deal.

Financing & Structure Equity:

• $36 billion from PIF, Silver Lake, and Affinity Partners (capital from their own control).
• Debt: $20B fully committed by JPMorgan, with $18B expected to be drawn at close.
• Advisors: EA: Goldman Sachs (financial), Wachtell (legal) Consortium: J.P. Morgan (financial), Kirkland & Ellis (lead legal), with additional firms advising each partner.

Timeline and Approvals Expected close:

• Q1 FY27 (pending regulatory and shareholder approval).
• EA stock will be delisted after closing.
• For Q2 FY26 earnings (Oct. 28, 2025)

Notable quotes from EA leadership and PE firms:

• Andrew Wilson (EA CEO): Deal recognizes EA’s creative teams and “will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.” 
• PIF: Partnership will “fuel innovation within the industry on a global scale.” 
• Silver Lake: “This investment embodies Silver Lake’s mission to partner with exceptional management teams at the highest quality companies. EA is a special company: a global leader in interactive entertainment, anchored by its premier sports franchise, with accelerating revenue growth and strong and scaling free cash flow.” 
• Jared Kushner (Affinity Partners): “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.” 

Here’s what some of Wall Street’s top desks are saying (courtesy of Bloomberg):

Bloomberg Intelligence

• Electronic Arts’ potential take-private deal “is priced at an 80% or more premium vs. multiples of global game makers,” though it “looks fair compared with Take-Two, especially given EA’s potential profit beats in 2026-27 and IP treasure trove”

Citi (neutral)

• “We believe this offer likely puts a floor underneath EA but not a ceiling,” although a competing bid is unlikely
• “If Battlefield 6 does particularly well, investors may seek a higher offer price”

Benchmark Co. (buy, PT to $250 from $200)

• “While the bid highlights the strategic value of EA’s portfolio, we view the timing as premature, effectively crystallizing value before the market can assess the potential of Battlefield 6 and the broader Battlefield cycle”

Baird (outperform, PT $170)

• “A deal could make sense given the company’s attractive FCF profile, and with likely opportunities to bring more efficiency to the organization and optimize the title slate”
• Baird suspects the board “would be open to a deal, and recognize other suitors could emerge (financial or strategic buyers), given the robust video game M&A environment, and with key EA titles FC and Battlefield now hitting the market”

Jefferies (buy, PT $200)

• “We view PIF and Silver Lake as sensible buyers for an LBO of EA, but the ~20% takeout premium implied in the $50B deal is smaller than would be expected,” although “we don’t see any obvious alternative buyers given big tech companies will likely remain more focused on AI capex investments”

In New York, shares extended gains from Friday, up another 5.5%, nearing the $210 level.