Oct. 6 at 4:11 AM
$EA Turning Oil to Bytes | EA’s
$55 Billion Take Private Deal Electronic Arts is going private in a
$55 billion leveraged buyout, the largest ever. Leveraged buyouts are risky due to high debt, but EA's predictable revenue from annual sports titles and live services makes it an attractive target. The deal, led by Silver Lake, PIF, and Affinity Partners, offers
$210 per share and is expected to close by June 2027. EA's strengths include high-margin live services, which drive steady cash flow. However, it faces risks like heavy debt, reliance on key sports licenses, and talent retention under private ownership. This LBO reflects a trend of private equity targeting gaming firms with stable, recurring revenue. Potential future targets include companies with strong IP and live-service models, such as Take-Two.