Electronic Arts has finalized a $55 billion leveraged buyout, ending its time as a publicly traded company. The publisher, known for franchises such as Madden and FC, has been delisted from the NASDAQ following the completion of the sale.
Ownership Structure
The acquisition was spearheaded by three entities, with the Saudi Arabia Public Investment Fund (PIF) holding the majority stake of nearly 94%. Silver Lake Partners holds 5.5%, while Affinity Partners, founded by Jared Kushner, owns the remaining 1.1%.
Impact on Operations and Staffing
In a statement following the deal, EA CEO Andrew Wilson said the company would continue to invest in innovation and develop new gaming experiences. However, the move to private ownership brings immediate changes to the company's transparency. With the company no longer listed on the stock exchange, the regular shareholder calls that previously provided public insight into the publisher's financial and operational health will cease.
While official company plans remain limited to the press release, external reports from the Financial Times suggest the new owners are prioritizing cost-cutting measures through the use of AI. This has led to industry expectations of potential workforce reductions, though no specific layoffs have been confirmed by EA.
Future of Existing Franchises
The impact on individual studios appears varied based on the nature of their content:
- Sports and Live-Service Titles: Franchises like Madden, FC, and Apex Legends are expected to continue operations as normal.
- Creative Studios: Projects at studios like Maxis and BioWare face more uncertainty. The Sims franchise, managed by Maxis, previously faced community backlash regarding the acquisition due to concerns over how the studio’s long-standing support for LGBTQ+ communities might align with the new ownership's values.
Specific details regarding project cancellations, studio restructuring, or changes to ongoing development schedules have not been announced.