EA Goes Private for $55B
The creators of Madden and Battlefield are entering a massive new era. Here is what EA's historic move to go private means for your favorite game franchises.
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The creators of Madden and Battlefield just pulled off a history-making deal. On Tuesday, Electronic Arts officially closed its massive $55 billion acquisition to transition into a private company.
This monumental move was first announced last September and has now successfully finalized after months of anticipation. An investor group featuring prominent firms Silver Lake and Affinity Partners backed the multi-billion-dollar buyout, Saudi Arabia's Public Investment Fund led the group and will reportedly own 93.4% of the new company.
As they enter this next chapter, CEO Andrew Wilson shared his optimism with staff, stating he is more excited than ever about their future. The deal ranks as one of the largest gaming acquisitions in history, surpassed only by Microsoft's $68.7 billion purchase of Activision Blizzard.
To justify the massive financial stakes, the publisher will likely depend heavily on established, bankable intellectual properties. This likely means doubling down on massive tentpole franchises like The Sims and EA Sports FC, rather than experimenting with smaller, risky titles.
The historic deal includes $20 billion of debt financing, making it the largest leveraged buyout ever.
