$55-billion deal struck for video game maker

Electronic Arts is being taken private as the industry struggles with a slowdown.

- BY WENDY LEE

THE possible acquisition of Electronic Arts comes as the video gaming industry is undergoing consolidation and facing more competition.

(JUSTIN SULLIVAN Getty Images)

Redwood City, Calif.-based Electronic Arts Inc., the maker of “Madden NFL” and “The Sims,” is set to be acquired for about $55 billion, in the latest example of change amid a slowdown in the video gaming industry.

The massive deal, which would be the biggest leveraged buyout in history, is backed by Saudia Arabia’s Public Investment Fund, as well as private equity firms Silver Lake and Affinity Partners. It is expected to close next year, pending shareholder and regulatory approvals. Affinity Partners is run by President Trump’s son-in-law Jared Kushner.

The Monday announcement comes as the video gaming industry is undergoing consolidation and is facing increased competition as it struggles to return to the high growth rates it saw during the COVID-19 pandemic.

“Together with our partners, we will create transformative experiences to inspire generations to come,” said Andrew Wilson, EA’s chairman and CEO, in a statement. “I am more energized than ever about the future we are building.”

EA stockholders will receive $210 per share in cash, a 25% premium over the stock’s closing price of $168.32 per share on Thursday. The company’s shares had climbed about 15%, in line with the Nasdaq composite index, from January to the middle of last week before the news of the acquisition plans came out.

After the deal is completed, the company will be taken private.