What started as a rumor is now confirmed: Electronic Arts’ (EA) buyout is official, as it has been confirmed by the Battlefield maker earlier this Monday. The company is being acquired by joint effort between Saudi Arabia’s Private Investment Fund (PIF) alongside several private investors in a group that includes Silver Lake and Affinity Partners.
According to all the information available, this will be an all-cash transaction of around $55 billion in value for EA, for the acquisition of 100% of the America-based publisher. Current stockholders will get $210 per share, also cash. EA notes this is a 25% premium on the company’s last reported share prices ($168.32). The entire deal is to be finalized by 2027 first fiscal quarter (June 2026).
So yeah, EA sold out.
Within its structure, management will see little to no changes—at least, according to what has been revealed: in this EA buyout, current CEO Andrew Wilson will continue to lead the company, which will remain in its current headquarters in Redwood, California. As for the board of directors and managers, nothing was stated so far, and the overall structure also remains unchanged, buuuuuuuuut…
EA buyout will likely result in layoffs
The thing about company acquisitions that most people tend to forget is that public statements always highlight the purchasing price, but never acknowledge what that price is going up against—and in the case of EA buyout, we know what that is: $20-ish billion in the red to be financed by JPMorgan.
PRG is not a business-oriented website so we’ll make it as clear as possible: as soon as that debt is leveraged by the purchase agreement, EA will likely have to downsize somewhat in order to accommodate the value generated by its new overlords. The easiest way to do that is through cost-cutting methods, and the easiest way to cut costs is to, well, cut people.
For some of the company’s current employees, the writing has been on the wall for a while: earlier this year, EA ordered a return-to-office mandate that saw any employee living within a 30-mile radius from the company’s HQ show up to work in person at least three times a week. Anyone out of that range would have to relocate unless specifically branded as a “remote-only” worker.
Andrew Wilson, who remains at the publisher’s head, stated at the time that the move seeked to “ignite the kinetic energy that fuels creativity”. As Kotaku notes, some of the company’s employees saw that as a form of “voluntary layoffs”—you know the type: a company won’t really fire you, but you’ll have to make so many concessions that continuing to work there becomes unbearable to the point where you will ask to leave.
Wilson, by the way, is among the top executives that will benefit from that “$210 premium” mentioned earlier. As per Quiver Quant estimates, he owns 50,490 shares of EA stock, which puts that award just above the $10,6 million mark.
He also thanked the employees during this endeavor. Here’s his full statement:
“This moment is a recognition of your creativity, your innovation, and your passion. You have built some of the world’s most iconic IP, created stories that have inspired global communities, and helped shape culture through interactive experiences. Everything we have achieved – and everything that lies ahead – is because of you.
Andrew Wilson
We are entering a new era of opportunity. This is one of the largest and most significant investments ever made in the entertainment industry. Our new partners bring deep experience across sports, gaming, and entertainment. They are committed with conviction to EA – they believe in our people, our leadership, and the long-term vision we are now building together.
Our mission at EA to — Inspire The World To Play — continues to guide everything we do. Our values and our commitment to players and fans around the world remain unchanged. With continued rigor and operational excellence, we can amplify the creativity of our teams, accelerate innovation, and pursue transformative opportunities that position EA to lead the future of entertainment. Together, we’ll create experiences that are bold, expressive, and deeply connected to inspire generations of players around the world.
I am excited to continue as CEO, working alongside our leadership team to advance our strategy. United by our vision, we will deliver experiences that transcend platforms and empower players everywhere to create worlds, characters, and stories that are bold, interactive, and deeply connected.
Thank you for your creativity, your commitment, and the passion you bring to EA every day. This is a historic moment, and with the support of our new partners, the future we are building together is brighter than ever.”
Meanwhile, in parallel to this EA buyout the company is on the verge of fully releasing Battlefield 6, a new entry on one of its most iconic franchises. Early testing has been incredibly favorable and EA has even put out a new, live-action trailer taking jabs at Activision’s Call of Duty, its major rival on the first-person shooter scene. The game comes out on October 10th, across PC, PS5, and Xbox Series X/S. The Battlefield 6 preload, however, comes a week earlier (October 3rd), on the following times:
- 8am PT
- 11am ET
- 4pm BST
- 5pm CEST
- 6pm EEST
- 7pm GST
- 11pm CST
It is worth noting that the nearly-trillionaire Public Investment Fund is not only Saudi Arabia’s largest investment endeavor within its borders, it is also one of the largest in the world.
Controlled by Crown Prince Mohammed bin Salman (Saudi Arabia’s de facto ruler), the EA buyout is just the most recent example of many of the fund’s past incursions in gaming. Saudi Arabia PIF founded Savvy Games Group (which itself owns shared in Take-Two Interactive, Nintendo and Embracer Group, as well as current Pokémon GO owner Scopely) and purchased stakes at Capcom and Nexon.
It is also worth noting that confirming the Electronic Arts acquisition might put the publisher’s core values at odds with Saudi Arabia PIF at any given time: the publisher is a common supporter of LGBT+ movements, usually promoting related events on franchises like The Sims. Meanwhile, Saudi Arabia’s law has declared same-sex intimacies of any kind illegal, and punishable in their court of law.
Andrew Wilson has stated that the EA buyout will not change the company’s core values, but that remains to be seen. We can only hope…
