Business
EA Stocks: EA to go private in $55 billion buyout: Silver Lake, PIF, and Affinity Partners lead historic deal; ends 36-year public listing | Business – The Times of India
Electronic Arts (EA), the creator of globally popular video games including “Madden NFL,” “Battlefield,” and “The Sims,” is poised to exit public markets after agreeing to a $55 billion acquisition. The deal, one of the largest leveraged buyouts ever, will transfer EA into private ownership, giving the company room to restructure without the scrutiny of public investors.The transaction will see private equity firm Silver Lake Partners, Saudi Arabia’s sovereign wealth fund PIF, and Affinity Partners — led by Jared Kushner, President Donald Trump’s son-in-law — pay $210 per share to EA stockholders. This surpasses the $32 billion privatization of Texas utility TXU in 2007, AP reported.EA has been publicly traded for 36 years. Founded by former Apple employee William “Trip” Hawkins, the company went public seven years after its inception, closing its first trading day at a split-adjusted 52 cents per share. CEO Andrew Wilson has led the company since 2013.The buyout is part of a recent flurry of high-profile technology deals involving Silver Lake. The firm is also involved in a joint venture with Oracle to manage US operations of TikTok, though full details of that transaction remain undisclosed. Silver Lake has a history of taking major tech companies private, including Skype in 2009 for $1.9 billion and Dell in 2013 for $24.9 billion, which later returned to public markets in 2018.By going private, EA can reorient its operations without the pressure of meeting quarterly targets. The company’s revenues have remained steady over the past three fiscal years, fluctuating between $7.4 billion and $7.6 billion, even as its games maintain a loyal fan base.Competition in the gaming sector has intensified in recent years. Microsoft acquired rival Activision Blizzard for nearly $69 billion in 2023, and mobile gaming companies like Epic Games have expanded rapidly. Analysts suggest that privatization could allow EA to invest in innovation, streamline operations, and strengthen its market position.While privatizations often lead to layoffs, EA has not indicated any immediate workforce reductions. After trimming 5% of its staff in 2024, the company had 14,500 employees as of March 2025 and carried out further, limited layoffs in May.The acquisition is expected to provide EA the flexibility to restructure, enhance efficiency, and pursue long-term growth strategies without the constraints of public market expectations, potentially reshaping the competitive landscape of the global gaming industry.