An investor consortium that features Saudi Arabia’s state-backed Public Funding Fund (PIF) has agreed to amass Battlefield, Apex Legends, and EA Sports activities FC maker Digital Arts for $55 billion.
Rumors of a deal started circulating final week and have now been confirmed by EA.
The U.S. writer—which owns quite a few improvement studios corresponding to BioWare, DICE, Maxis, Motive, Respawn, and Criterion—has entered right into a definitive settlement to be acquired by a consortium of traders that features PIF, Silver Lake, and Affinity Companions.
The deal will take the type of an all-cash transaction that values EA at round $55 billion. EA stated the transfer will allow it to “speed up innovation and progress to construct the way forward for leisure” whereas delivering “compelling worth” to all stockholders.
“Underneath the phrases of the settlement, the Consortium will purchase one hundred pc of EA, with PIF rolling over its current 9.9 % stake within the Firm. EA stockholders will obtain $210 per share in money,” stated EA in a word to traders.
“The per share buy worth represents a 25 % premium to EA’s unaffected share worth of $168.32 at market shut on September 25, 2025, the final totally unaffected buying and selling day, and a premium to EA’s unaffected all-time excessive of $179.01 at market shut on August 14, 2025.”
The transaction is anticipated to finish in Q1 FY27 and stays topic to regulatory and stockholder approval. If the deal closes, EA will stay headquartered in Redwood Metropolis, California, and can proceed to be led by CEO Andrew Wilson.
Commenting on the deal, Wilson stated the transaction—which represents the biggest all-cash sponsor take-private funding in historical past—is a “highly effective recognition” of the outstanding work of EA workers, lots of whom have been laid off in recent times.
“Our artistic and passionate groups at EA have delivered extraordinary experiences for lots of of hundreds of thousands of followers, constructed among the world’s most iconic IP, and created important worth for our enterprise,” stated Wilson.
“This second is a strong recognition of their outstanding work. Wanting forward, we’ll proceed to push the boundaries of leisure, sports activities, and know-how, unlocking new alternatives.”
Human Rights Watch claims PIF has “facilitated and benefited from human rights abuses”
It is unclear how a lot management PIF can have over EA post-completion, however a spokesperson for the funding fund definitely indicated it is going to be closely concerned transferring ahead.
“PIF is uniquely positioned within the international gaming and esports sectors, constructing and supporting ecosystems that join followers, builders, and IP creators,” stated Turqi Alnowaiser, deputy governor and head of worldwide investments at PIF.
“PIF has demonstrated a robust dedication to those sectors, and this partnership will assist additional drive EA’s long-term progress, whereas fueling innovation throughout the business on a world scale.”
PIF already held a 9.9 % stake in EA, which can now be rolled over on account of the transaction.
The sovereign wealth fund, which payments itself as a “catalyst of change” on its web site, is chaired by Saudi Arabia’s de-facto ruler and crown prince Mohammed bin Salman.
As famous by The BBC, Mohammed bin Salman was linked to the homicide of Washington Submit journalist Jamal Khashoggi, who regularly criticized his insurance policies and management.
Advocacy teams corresponding to Amnesty Worldwide and Human Rights Watch have spoken out in opposition to Mohammed bin Salman and Saudi Arabia for (amongst different issues) making an attempt to manage the media, proscribing free speech, legally prohibiting LGBTQ+ relationships and gender expression, outlawing protests and demonstrations, and discriminating in opposition to ladies.
Human Rights Watch particularly claims PIF “has facilitated and benefited instantly from critical human rights abuses linked to Crown Prince Mohammed,” and is getting used as a instrument to whitewash the nation’s “abysmal” human rights report.
PIF has closely invested within the online game business instantly or via subsidiaries corresponding to Savvy Video games Group. Earlier this yr, Savvy-owned writer Scopely bought Niantic’s online game enterprise and key franchises corresponding to Pokemon Go. The wealth fund additionally owns stakes in Nintendo, Koei Tecmo, Capcom, Nexon, and Take-Two.
