EA to go private in colossal $55 billion deal ahead of Battlefield 6 launch

EA has today announced that it is going private in a deal worth around $55 billion / £40 billion. Shareholders will receive $210 /£156 per share in cash, a 25% premium. The consortium buying EA includes Saudi Arabia's investment fund PIF, Silver Lake, and Affinity Partners. EA CEO Andrew Wilson will remain in place, and the PIF's existing 9.9% stake will roll over. The news comes less than two weeks before the highly anticipated release of Battlefield 6, which analysts expect to boost EA's fortunes significantly.

Other than Battlefield 6, EA has an existing portfolio of live-service cash cows, including the enduring success of sports titles like EA FC and hit battle royale game Apex Legends. This approach seems likely to continue, judging by Wilson's statements in the announcement.

"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," says Wilson in the announcement.

"This moment is a powerful recognition of their remarkable work. 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 energised than ever about the future we are building."

The deal is the largest all-cash sponsor take-private investment in history, and one of the biggests deal of any kind since Microsoft purchased Activision in 2022. However, analysts tell Reuters that this $55 billion valuation "falls materially short" of EA's true value, thanks to the upcoming release of Battlefield 6 and a stacked pipeline of incremental bookings. "The true earnings power of EA is only beginning to emerge," they say.

The announcement also contains quotes from Turqi Alnowaiser, deputy governor and head of international investments at PIF, and Affinity Partners CEO Jared Kushner, who is US President Donald Trump's son-in-law.

"PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators," says Alnowaiser, suggesting that PIF wants to double down on the success of the Esports World Cup.

However, fans are not entirely happy with the takeover, because chair of PIF and Saudi Arabia's ruler Prince Mohammed bin Salman is a controversial figure. The CIA alleges he ordered the assassination of journalist Jamal Khashoggi, and Amnesty International claims the country has a poor human rights record.

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