Electronic Arts (EA) one of the largest companies toy In the world she agreed to sell her to individuals investors (Silver Lake, Saudi Arabia’s PIF PIF PIF), in an agreement that values the company at about $ 55 billion, marking the largest leverage acquisition ever recorded.
The investor consortium (Saudi Arabia’s fund, along with Silver Lake Management and Affinity Partners of Jared Kounsner), agreed to pay $ 210 per share in cash, a 25% premium in relation to the price of EA before the negotiations were leaked on Friday. EA is known for the production and version of games such as EA Sports FC (formerly known as FIFA), The Sims and Mass Effect.
The deal replaces the acquisition of TXU electricity company in 2007, worth about $ 45 billion, as the largest acquisition ever recorded. It is also one of the largest 2025 mergers and acquisition agreements and shows Wall Street’s willingness to change data, despite fears of recession and geopolitical concerns that affect the wider economy.
Jpmorgan Chase & Co. It provides $ 20 billion in debt, the highest debt commitment to redemption ever made.
Electronic Arts is selling $ 178 billion in the midst of the sluggish development of the video game industry, after increasing sales during restrictive measures due to the pandemic. The company, which has suffered a lot of redundancies, is looking for new areas of growth to inspire players who have turned to free franchises that are constantly updated, instead of spending money on new titles that can cost $ 80.
The transaction will be funded in cash by the partners of the consortium, while the Saudi Arabian PIF will renew its existing $ 9.9% share, which corresponds to a share capital investment of about $ 36 billion. According to a company document, the agreement provides for a $ 1 billion cancellation fee if it is not completed.
Electronic Arts shares increased by 4.8% this morning in New York, reaching $ 202.73, 3.5% below the bid price. Game companies such as Take-Two Interactive Software Inc. and Roblox Corp.
The record for privatization is the last sign that the explosion of agreements expected under President Donald Trump’s government begins to be confirmed as it sealed the most active quarter for more than three years. It also shows the central role that the Middle Eastern state funds are increasingly playing in the largest agreements.