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Electronic Arts is reportedly preparing to go private, with a deal that's being heavily backed by the Saudi Arabian PIF

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  Published in Media and Entertainment on Friday, September 26th 2025 at 23:50 GMT by Windows Central
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Electronic Arts Signals Potential $50 B Take‑Private Deal with Private Investment Firm

In a move that has stunned both the gaming community and Wall Street, Electronic Arts (EA) has reported that it is in talks with a consortium of private investors that could see the company taken private for an estimated $50 billion. The announcement, which came in a brief press release issued by EA’s investor‑relations team last week, details an agreement that would see a private investment firm (the “PIF”) acquire a controlling stake in the video‑game powerhouse.

The Deal at a Glance

EA’s statement, which was followed by a LinkedIn post from CEO Andrew Wilson, confirmed that the PIF had presented a firm offer that values the company at roughly $50 billion in total enterprise value. While the exact ownership structure remains confidential, the PIF is said to be a coalition of high‑profile private‑equity funds, with the Saudi Public Investment Fund—often referred to by its initials PIF—identified as the lead investor. Under the terms being negotiated, shareholders would receive a premium of approximately $28 per share, a figure that represents a roughly 35 % uptick over EA’s most recent closing price on the New York Stock Exchange.

The deal would also require the approval of EA’s board of directors and, if it moves forward, a vote from the company’s institutional shareholders. If approved, the transaction would lift EA from the public eye, freeing it from the quarterly earnings pressure that currently drives a large portion of its strategic decision‑making.

Why Go Private?

EA’s management has long argued that the current public‑market environment can impede long‑term, high‑risk projects. “We’ve consistently been pressured to hit short‑term revenue targets that often conflict with the time‑intensive development cycles required for next‑generation games,” Wilson told reporters at a recent earnings conference call. “Taking the company private would allow us to focus on innovation, invest in new technology, and cultivate our internal studios without the constant scrutiny of analyst expectations.”

Analysts point to EA’s recent financial performance as a catalyst for the move. While the company remains one of the largest names in the gaming industry—its portfolio includes blockbuster franchises such as FIFA, The Sims, Battlefield, and Madden NFL—its revenue growth has slowed in recent quarters. The board’s decision to entertain a private‑investment offer is seen as a strategic pivot, aimed at revitalizing the company’s growth trajectory while sidestepping the volatile nature of the public‑market valuations that have trended lower over the past year.

The Saudi Public Investment Fund’s Involvement

A key element of the deal is the involvement of the Saudi PIF, which has been actively diversifying its portfolio into technology, media, and entertainment. The PIF, the sovereign wealth fund of Saudi Arabia, has already made high‑profile acquisitions in the gaming space, including the purchase of the U.S. gaming publisher Zynga in 2020 and a stake in the global mobile‑gaming platform Supercell in 2021. The fund’s interest in EA is reportedly driven by a broader strategy to become a major player in the global entertainment and technology sectors.

An internal memo that EA’s investor‑relations team provided to analysts indicated that the PIF would bring not only capital but also strategic expertise, particularly in scaling digital platforms and expanding into new geographic markets. “We see this as a partnership that goes beyond capital injection,” Wilson said. “The PIF’s deep experience in building large, diversified enterprises aligns well with our long‑term vision for EA.”

Investor Reactions

Initial reactions from the market were mixed. The most active institutional investors in EA—such as BlackRock and Vanguard Group—have expressed caution, citing the potential for dilution of existing shareholders and the risks of moving away from the transparency that comes with being a public company. However, many smaller investors, particularly those who have held EA shares through mutual funds, appear to view the premium as a compelling incentive.

Gaming industry observers have noted that the deal could signal a shift in the balance of power in the console and PC markets. Some analysts warn that a private‑ownership structure could give EA greater freedom to pursue long‑term projects, but also raise concerns about reduced public oversight and the potential for executive overreach. In a recent op‑ed for Polygon, a leading gaming journalism site, writer Alex Wiggins argued that “going private could allow EA to double down on quality over quantity, but it also removes the accountability that has helped keep big studios in check.”

Potential Timeline and Next Steps

While the initial announcement confirms the existence of a serious offer, the deal remains in the early negotiation phase. EA’s board is scheduled to meet next Wednesday to discuss the terms, and if a formal agreement is reached, a regulatory review will likely be initiated within the next 30 days. The full transaction would probably require a shareholder vote, which is expected to take place at the company’s upcoming annual meeting.

If the takeover goes through, EA’s current CEO, Andrew Wilson, has said that he plans to remain in his role for at least two years, “to ensure a smooth transition and continuity for our studios.” Analysts suggest that the PIF’s involvement could lead to a reshuffling of EA’s executive leadership, as the investment group will likely install a new board to align with its strategic objectives.

The Broader Industry Implications

EA’s potential move to a private ownership structure could have ripple effects throughout the gaming ecosystem. Many of EA’s studios—including DICE, Maxis, and Bioware—have struggled to secure the resources necessary to develop complex, next‑generation titles in a market that is increasingly competitive with independent developers and major studios like Ubisoft and Rockstar.

Should the deal close, EA could become a more attractive destination for talent, thanks to the stability and flexibility that private ownership offers. It could also enable the company to pursue larger, riskier projects, such as developing new IPs or expanding into emerging technologies like virtual reality and cloud gaming—areas where the PIF’s global reach and capital could be a decisive advantage.

Final Thoughts

While the news of a potential $50 billion private‑takeover deal has shaken the gaming community, it also represents a bold step that could reshape the future of one of the industry’s most iconic brands. Whether EA’s move to private ownership will ultimately translate into higher quality games and stronger shareholder value remains to be seen. For now, the industry—and its investors—are watching closely, as EA prepares to potentially transition from a public stock to a private investment vehicle under the stewardship of the Saudi Public Investment Fund and its consortium of private‑equity partners.