Following the recent news that Electronic Arts is being acquired by Saudi Arabia’s PIF, Silver Lake, and Affinity Partners in a $55 billion deal, a new report from The Financial Times (as reported by GamesRadar) reveals that the agreement also included taking on $20 billion in debt for EA.
With this debt in mind, the new owners of EA are also looking to make game development more efficient to recover costs and increase profits faster. This efficiency drive, which hasn’t been officially announced, will likely include using generative AI. However, the report doesn’t specify how generative AI will be used in EA’s game development process.
Following many large company takeovers, EA may also begin to reduce its workforce as part of an effort to become more efficient, which is what investors are now requesting. The investors’ interest in AI could also lead to job losses across the company’s different studios. This could have a ripple effect on employment.
The investor group’s deal to buy EA is worth approximately $55 billion. Current EA shareholders will receive $210 in cash for each share they own. The announcement highlighted that this price represents a 25 percent increase over EA’s share price at market close on September 25, 2025. It’s also higher than EA’s record share value of $179.01, which occurred on August 14, 2025.
According to a statement from EA CEO and chairman Andrew Wilson, the company’s creative and passionate teams have provided amazing experiences for hundreds of millions of fans, developed some of the most well-known franchises globally, and significantly benefited the company. He described this as a strong acknowledgement of their exceptional efforts.
Moving forward, we’re committed to constantly innovating in entertainment, sports, and technology, and finding exciting new possibilities. By collaborating with our partners, we aim to develop groundbreaking experiences that will motivate future generations. I’m incredibly enthusiastic about the future we’re creating together.
The agreement has received approval from EA’s board, and is anticipated to be completed in the first quarter of fiscal year 2027. As part of this arrangement, EA will keep its headquarters where it is, remaining in Redwood City, California. Andrew Wilson will also continue serving as the company’s CEO once the deal is finalized.
This investment reflects Silver Lake’s commitment to working with top-performing leadership at leading companies. EA is a remarkable company – a worldwide leader in interactive entertainment, built around its successful sports games, and experiencing increasing revenue and growing free cash flow. We’re excited to invest and collaborate with Andrew – a truly exceptional CEO who has doubled revenue, almost tripled EBITDA, and increased the company’s market value five times over during his time leading the company,” stated Egon Durban, Silver Lake co-CEO and managing partner.
We’re optimistic about EA’s future and plan to make significant investments to help the company grow. We are thrilled to support Andrew and the entire EA team as they speed up innovation, broaden their global presence, and keep providing amazing experiences for players and fans of all ages.
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2025-09-30 17:41