Electronic Arts (EA) is to be taken private under a $55bn (£41bn) buyout – a record sum for such a deal.
Under the terms, private equity firm Silver Lake Partners, Saudi Arabia’s Public Investment Fund (PIF) and Affinity Partners will pay the video game maker’s shareholders $210 per share.
The sum represents a premium of 25% on EA’s closing share price last Thursday, before the Wall Street Journal first reported that an announcement was close.
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The total value exceeds the $32bn price paid to take Texas utility TXU private in 2007. Around $20bn of the purchase price will be made up of financing.
There’s been a rebound in global dealmaking as lower central bank interest rates bring borrowing costs down.
The deal for the maker of Battlefield, FC 26 and The Sims also represents confidence in the recovery for blockbuster game franchises following a post-pandemic downturn that saw gamers become cautious on their spending.
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EA’s sports portfolio has been its strongest performer due to its global appeal and that in-game spending has remained resilient.
The transaction is subject to shareholder and regulatory approval.
