Home / Electronic Arts: $55B Buyout, Quarterly Earnings & Outlook

Electronic Arts: $55B Buyout, Quarterly Earnings & Outlook

By: Jasmin Espinas

Updated: September 29, 2025

Published: September 29, 2025

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Electronic Arts holds a strong position in AAA game publishing, with franchises like FIFA (now EA Sports FC), The Sims, and Apex Legends consistently drawing large player bases.

As one of the few publicly traded game developers at its scale, EA sits at the intersection of predictable live-service revenue and rising acquisition interest from private equity groups.

This article covers two developments: EA’s transition to private ownership and the company’s latest Q1 earnings report.

Electronic Arts to Go Private in Historic $55 Billion Buyout

Electronic Arts has agreed to a $55 billion buyout led by Saudi Arabia’s Public Investment Fund, Affinity Partners, and Silver Lake.

Electronic Arts and The Sims Franchise have been officially SOLD to Saudi Arabia’s PIF Fund, Jared Kushner’s Affinity Partners and Silver Lake 🚨
>> https://t.co/zEmPyjnJIZ pic.twitter.com/NURKYu2upO
— Sims Community (@TheSimCommunity) September 29, 2025

If approved, it would be the largest leveraged buyout on record. The structure includes $36 billion in cash, equity already held by PIF, and $20 billion in debt arranged by JPMorgan.

In addition, the deal prices EA shares at $210, a 25% premium over its September 25 closing price. This puts the company’s equity value at $52.5 billion, based on figures compiled by Reuters.

EA stock climbed more than 5% following the announcement, trading around $202.54 at midday.

The agreement also contains strict break conditions. If EA’s board reverses, accepts a higher bid, or pursues another merger within a year of a failed shareholder vote, the company must pay a $1 billion termination fee.

Furthermore, the buyers would owe the same amount if regulatory approvals extend beyond September 28, 2026.

Electronic Arts Delivers Solid Q1 Results

Electronic Arts reported first-quarter results that surpassed internal projections, driven by stronger engagement across multiple franchises.

Net bookings reached the high end of guidance, and several titles delivered above-average performance compared to the same period last year.

Firstly, net revenue for the quarter was $1.671 billion.
Secondly, operating cash flow reached $17 million for the quarter and $1.976 billion over the trailing twelve months.
Lastly, EA repurchased 3.0 million shares for $375 million, bringing its twelve-month total to 17.8 million shares at $2.5 billion.

Fiscal Year 2026 Expectations
The company reaffirmed its full-year outlook on May 6.

Firstly, net bookings are projected between $7.6 billion and $8.0 billion.
Net revenue is expected to be between $7.1 billion and $7.5 billion.
- Deferred net revenue (online-enabled games) is estimated at $500 million.
GAAP operating expenses are forecasted between $4.47 billion and $4.57 billion.
Net income is expected to fall between $795 million and $974 million.
Diluted earnings per share are estimated at $3.09 to $3.79.
Operating cash flow should land between $2.2 billion and $2.4 billion.
The company expects a share count of 257 million for EPS calculations.
EA intends to return at least 80% of free cash flow to shareholders through buybacks and dividends by fiscal year 2027.