Electronic Arts (EA), a leading global video game publisher, has been purchased by a private consortium for a staggering £40 billion ($55bn), making it the largest acquisition of a public company in history.
The consortium, which includes investors like Jared Kushner and Saudi Arabia’s Public Investment Fund, acquired the powerhouse behind popular gaming franchises such as FIFA (now EA FC), Madden, and Battlefield.
The deal entails a payment of $210 per share, a significant increase from the company’s initial listing price of $0.52 36 years ago.
While fans eagerly await the release of Battlefield 6 on October 10, the acquisition is not expected to impact the gaming experience. However, the consortium’s future plans for the company remain undisclosed.
EA’s CEO, Andrew Wilson, described the £40 billion acquisition as a testament to the company’s dedication and success. He expressed confidence in the new partners’ expertise in sports, gaming, and entertainment, emphasizing their belief in EA’s team and long-term vision.
Established in 1982 by former Apple employee William “Trip” Hawkins, EA has a rich history of producing top-selling titles like FIFA, with over 300 million copies sold, and expanding its portfolio through acquisitions like DICE, the publisher of Battlefield.
This acquisition ranks as the industry’s second-largest, following Microsoft’s acquisition of Activision Blizzard for £51 billion. Industry experts have raised concerns about the financing structure of the deal, with $36 billion in cash contributions from the consortium and the remaining $20 billion financed through loans.
Notably, the debt-heavy nature of the buyout by private equity has sparked worries among gamers. Analysts suggest that revenue from flagship titles like EA Sports FC, Madden, and Battlefield 6 will be vital for servicing the debt, potentially affecting EA’s ability to invest in new games.