Gaming Shake-Up: Electronic Arts Acquired for $55 Billion, Ending 36 Years Public

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Electronic Arts (EA), the renowned publisher behind iconic video game franchises such as Madden NFL and The Sims, is set to be acquired and taken private in a landmark deal valued at an staggering $55 billion. This monumental transaction marks a significant shift for one of the gaming industry’s titans.

Historic Leveraged Buyout Reshapes Gaming Landscape

Announced on Monday, the acquisition will see EA transition from a publicly traded entity to a private company. This deal stands as the most expensive leveraged buyout in history, eclipsing the $32 billion paid for Texas utility TXU in 2007, underscoring the immense value placed on the interactive entertainment sector.

Under the terms of the agreement, EA stockholders will receive $210 per share. The consortium leading this acquisition includes prominent private equity firm Silver Lake Partners, Saudi Arabia’s sovereign wealth fund (PIF), and Affinity Partners. Notably, Affinity Partners is a private equity firm managed by Jared Kushner, son-in-law to former President Donald Trump.

Anticipated Move Follows Market Buzz

The deal’s announcement comes after widespread anticipation, fueled by discussions that leaked to The Wall Street Journal towards the end of last week. Speculation surrounding EA’s future had been building, culminating in this official declaration that will reshape its operational structure.

An End to EA’s Public Era

Should the transaction proceed as planned, it will conclude Electronic Arts’ 36-year journey as a publicly traded company. EA first entered the stock market with an initial public offering (IPO) where shares closed their first day of trading at a split-adjusted 52 cents.

The company was founded seven years prior to its IPO by William “Trip” Hawkins, a former Apple employee. Hawkins’ early fascination with analog baseball and football games like “Strat-O-Matic” in the 1960s laid the groundwork for what would become one of the world’s most influential video game publishers.

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