The video game industry is about to experience a seismic shift as Electronic Arts (EA), one of the world’s largest game publishers, prepares to be taken private in a groundbreaking $55 billion transaction. The deal, involving private equity firm Silver Lake Partners, Saudi Arabia’s Public Investment Fund (PIF), and Affinity Partners, will transform the company’s operational landscape.

Under the agreement, EA shareholders will receive $210 per share, marking the end of the company’s 36-year run as a publicly traded entity. Interestingly, PIF, which already holds a 9.9% stake in EA, will continue its investment and play a significant role in the transaction.

This move comes at a critical time for the gaming industry, with major consolidations happening rapidly. Microsoft’s acquisition of Activision Blizzard for nearly $69 billion in 2023 set a precedent for massive tech mergers. For EA, going private offers strategic advantages, potentially allowing more flexible long-term planning without the pressure of quarterly financial targets.

The current CEO, Andrew Wilson, will continue leading the company through this transition. Jared Kushner, CEO of Affinity Partners, expressed excitement about the deal, highlighting EA’s ability to create “iconic, lasting experiences”.

EA’s headquarters will remain in Redwood City, California, maintaining its connection to the Bay Area’s tech ecosystem. The company, founded by William “Trip” Hawkins in 1982, has been a pivotal player in the video game industry, producing beloved franchises like Madden NFL, Battlefield, and The Sims.

While the transaction is expected to close in the first quarter of 2027, it still requires shareholder approval. The move reflects the ongoing transformation in the tech and gaming sectors, where private equity and sovereign wealth funds are increasingly interested in digital entertainment assets.

With this landmark deal, EA is positioning itself for a new era of strategic development, potentially reshaping how video game companies operate in an increasingly competitive global market.