Video game giant Electronic Arts (EA) has agreed to be taken private in a record-breaking $55 billion all-cash acquisition by a consortium comprising Saudi Arabia’s Public Investment Fund (PIF), U.S. private equity firm Silver Lake, and Affinity Partners, the investment firm led by Jared Kushner.
Largest-Ever Gaming Buyout
The deal, valued at $210 per share, represents a 25% premium on EA’s unaffected stock price and is set to become the largest all-cash sponsor-led take-private transaction in history. Once completed, EA will be delisted from public markets, joining a wave of consolidation in the global gaming industry following Microsoft’s $69 billion purchase of Activision Blizzard in 2023.
Strategic Motives
EA, publisher of blockbuster franchises including FIFA/FC, Madden NFL, The Sims, and Battlefield, has long been viewed as an attractive takeover target due to its predictable cash flows and globally recognized intellectual property. Going private is expected to give the company greater flexibility to invest in new technologies, including artificial intelligence and live-service gaming models, without the short-term pressures of public shareholders.
For PIF, the acquisition aligns with Saudi Arabia’s Vision 2030 strategy, which seeks to diversify the kingdom’s economy through heavy investment in gaming and esports. Silver Lake brings deep experience in large-scale technology buyouts, while Affinity Partners’ involvement reflects growing U.S.-Middle East investment ties.
Financing and Leadership
The consortium will provide approximately $36 billion in equity, with $20 billion in debt financing arranged by JPMorgan Chase. PIF will roll over its existing 9.9% stake in EA into the new structure. EA’s long-serving CEO Andrew Wilson is expected to remain in his role, ensuring continuity in leadership.
Industry and Market Impact
Analysts say the deal could reshape the competitive landscape of gaming, giving EA more latitude to expand its sports and live-service offerings while raising questions about creative direction under new ownership. Shares of EA surged more than 15% in the days leading up to the announcement.
Outlook
The transaction is expected to close by early 2027, pending regulatory approvals. If completed, it will cement EA’s status as one of the most valuable privately held gaming companies in the world and highlight the growing influence of sovereign wealth funds and private equity in shaping the future of global entertainment.
