EA Goes Private in $36B Deal Backed by Private Equity

Electronic Arts (EA), one of the world’s largest gaming companies, is set to go private in a landmark deal valued at $36 billion. This means all of EA’s publicly traded shares will be bought out, and the company will be delisted from the stock exchange. The purchase values EA at $210 per share , a 25% premium over its current market valuation.

This marks the second-largest acquisition in gaming history, trailing only Microsoft’s $69 billion takeover of Activision Blizzard. That earlier deal faced major regulatory hurdles, especially in the UK, and was only approved after Microsoft agreed to license Activision’s games ,  like Call of Duty   to Ubisoft for cloud distribution.

Key Highlights

• EA goes private in $36 billion deal with private equity backing.
• Deal adds $20 billion debt, may limit future game development funding.
• Concerns grow over layoffs, cash flow pressure from new private owners.

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Despite the scale of the EA deal, its structure has raised eyebrows. Approximately $36 billion will be provided by private equity firms, with the rest financed through loans. Industry expert Christopher Dring noted that while EA had been exploring a buyer to help it "level up," the private equity route has created unease in the gaming world.

The deal is expected to saddle EA with around $20 billion in debt. Revenue from blockbuster franchises like EA Sports FC, Madden, and the upcoming Battlefield 6 will likely be channeled into servicing that debt ,  potentially limiting EA’s ability to invest in new titles. There’s also concern that pressure from the new owners to boost cash flow could lead to job cuts and budget tightening across the company.

EA CEO Andrew Wilson, who will remain at the helm, called the acquisition a “powerful recognition” of the company’s work, promising to deliver "transformative experiences" for future generations.