Gaming titan EA goes private as largest leveraged buyout in history is completed

EA is now officially a private company, and the $55 billion leveraged buyout is complete as the group now prepares for major cost-cutting.

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Electronic Arts is now private for the first time since the entertainment group's founding in 1982. After months of regulatory scrutiny from worldwide trade commissions, the deal was given the greenlight, seeing three major investors taking control of EA: Saudi Arabia's Public Investment Fund, who principally funded the deal with 93% of backing, as well as firms Affinity Partners and Silver Lake.

EA CEO Andrew Wilson will stay onboard to lead the publisher into the future of gaming, which seems to be quite lean. The publisher rounded out its previous fiscal year with $8 billion net bookings, the highest in company history, driven by half a billion dollars in microtransaction deferrals.

Since the deal has been announced, EA has already been under fire from its audience for introducing controversial microtransactions into College Football 27, which is among its best-selling franchises. The publisher also recently introduced a $150 edition of FC27.

Check below for prepared remarks from each member of the consortium and EA's CEO:

Frequently Asked Questions

TweakBot answers common questions about this news using TweakTown's own coverage from this page and related content from our archive. All answers are generated from TweakTown content and not outside sources. Tap a question to reveal the answer, or type your own below related to this content.

Question #1

How will EA's change to a private company affect the release schedule or pricing of upcoming games like College Football 27?

Click to reveal answer

Question #2

What cost-cutting measures are expected now that the $55 billion leveraged buyout is complete?

The primary article says EA is preparing for major cost-cutting but does not specify what measures will be taken. Related coverage reports the buyout carries about $20 billion in debt and may trigger more layoffs, with one piece saying EA will consider "mass layoffs" and aims to cut roughly $700 million in costs (see Related 1 , News #107984 and Related 3 , News #113016).

Answered

Question #3

Who are the controlling investors in the consortium and what stake did Saudi Arabia's Public Investment Fund provide?

The consortium is controlled by three major investors: Saudi Arabia's Public Investment Fund, Affinity Partners, and Silver Lake. Saudi Arabia's Public Investment Fund principally funded the deal, providing 93% of the backing.

Answered

Question #4

Will Andrew Wilson remain in charge and what role will he play after the buyout?

Yes. Andrew Wilson will stay onboard as EA's Chairman and CEO and will continue to lead the publisher into the future of gaming.

Answered

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"This moment recognizes the extraordinary people whose creativity, ambition and passion have made EA one of the world's leading interactive entertainment companies. We're entering this next chapter from a position of strength with partners who share our vision and ambition. Together, we'll invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day."

--Andrew Wilson, Chairman & CEO of Electronic Arts

"Having been a minority investor in the company for more than five years, we have a deep understanding of EA's unique platform, massive global sports and gaming franchises, and iconic IP. Entertainment and sports are key areas of strategic focus for PIF, and are among the fastest growing and evolving sectors around the world. Together, the Consortium is uniquely positioned to be a long-term partner to EA's management team in driving sustained growth and innovation for EA and the industry."

--Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF

"EA's franchises are some of the most beloved in entertainment, combining exceptional creative talent with a relentless focus on players.

"As long-term investors in technology, we admire how EA's innovation fuels imagination and human connection. We're proud to join with PIF and Affinity Partners to invest heavily in EA's growth, including what AI can do to enhance game development and player experience, and excited to partner with Andrew and the EA team as they raise the bar for fans everywhere."

--Egon Durban, CEO and Managing Partner of Silver Lake

"EA has created stories, characters, and communities that have become part of everyday life for hundreds of millions of people.

"We're excited to support the company as it continues to reach new audiences, inspire the next generation of creators, and expand the ways people around the world connect through play."

--Jared Kushner, Chief Executive Officer of Affinity Partners