Electronic Arts, a popular video game manufacturing company, is being acquired by Silver Lake Partners, a Saudi Arabian sovereign wealth fund, for 52.5 billion dollars. This deal marks the largest buyout funded by a private equity firm in history. The company will now be taken private, but the headquarters will remain in Redwood, California until otherwise stated. The current CEO Andrew Wilson, who has been the CEO since 2013, will remain in his role.  The total price of the deal surpasses the old record, which was 32 billion dollars to take Texas Utility private in 2007. 

By going private, EA will now be able to reprogram and manufacture to its complete liking, without having to worry about investment pressures. As of right now, EA claims that it will not be cutting costs or laying off employees, which typically ensues after a company is taken private.

As stated earlier, Electronic Arts is a video game manufacturing company that became very popular in the sports game market and is currently the leading producer of games on PC, console, and mobile devices. Some of the most notable games include Madden, EA College Football, EA NHL, and EA UFC. Specifically, Madden has been a staple in sports games for people all over the world. Every year, it never fails to become one of the world’s most popular online games. 

HHS student Colin Garrity says, “I loved to play Madden growing up. I would buy the new game every year.”

As of right now, the future is not fully clear. What we do know is that the deal will not take place until 2027 and the majority of the work will remain in the United States. When the deal is in place, it will be interesting to see what changes are made to the company. There are possibilities for major in-game changes, title discontinuation, and more to come with the 2027 private equity buyout. 

HHS student Quinn Allen commented on the deal, noting “I am curious to see how the company and games are affected by an overseas owner, and as a private company.”