Electronic Arts acquired by private equity in $55 billion deal
Electronic Arts, the video game publisher behind franchises like FIFA and Madden, has been officially sold to a private equity consortium in a $55 billion transaction. The deal, announced in September 2025, marks a shift from public to private ownership for the company. Industry observers anticipate changes in strategy under new ownership.
The acquisition of Electronic Arts (EA) by a group of private equity firms was confirmed on September 15, 2025, valuing the company at $55 billion. Led by Silver Lake Partners and including other investors such as Thoma Bravo and Providence Equity Partners, the consortium will take EA private, delisting it from the Nasdaq stock exchange. EA's shares surged over 20% in pre-market trading following the announcement, reflecting investor approval of the premium price offered—$150 per share in cash.
EA, founded in 1982 and headquartered in Redwood City, California, has long been a powerhouse in the gaming industry, with annual revenues exceeding $7 billion in recent years. The company is known for popular titles including The Sims, Battlefield, and sports simulations like Madden NFL and EA Sports FC (formerly FIFA). Under public ownership since its 1989 IPO, EA has faced pressures from activist investors and fluctuating stock performance amid broader market challenges in gaming.
"This transaction represents a significant milestone for EA, allowing us to focus on long-term innovation without the short-term pressures of public markets," stated EA CEO Andrew Wilson in the official press release. The deal is expected to close in the first half of 2026, pending regulatory approvals and shareholder votes. Private equity ownership often involves cost optimizations, such as streamlining operations or divesting non-core assets, which could reshape EA's portfolio. For instance, the first source notes that private buyers might prioritize high-margin franchises while potentially scaling back on experimental projects.
Analysts have mixed views on the implications. One expert quoted in the coverage remarked, "Private equity can unlock value through restructuring, but it risks cutting into creative teams that drive EA's success." No major contradictions appear between reports, though details on the exact consortium composition vary slightly, with both confirming Silver Lake's lead role. This move follows a trend of private equity entering the tech and entertainment sectors, seeking stable cash flows from established brands like EA's.
The transaction underscores evolving dynamics in the gaming industry, where consolidation is common amid rising development costs and competition from mobile and cloud gaming.