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Electronic Arts (EA), the longtime titan of the video game industry, is set to be acquired in a record-shattering $55 billion all-cash leveraged buyout. If you are familiar with U.S., Saudi politics, wrestling and sports, some of the acquiring party names will sound familiar. In any case, this buyout will take the company private. The purchasing consortium includes Saudi Arabia’s Public Investment Fund (PIF), tech investment giant Silver Lake, and Affinity Partners, the investment firm tied to Jared Kushner. Of course, those who know would recognize Kushner as being the son-in-law of President Donald Trump.
Given how media outlets were led on for weeks without a proper announcement smelled fishy, however, EA finally revealed the details today. Under the agreement, EA shareholders will receive $210 per share, representing a 25% premium over EA’s September 25, 2025, closing price. PIF, which already owns 9.9% of EA, will roll over its stake into the new ownership structure.
The transaction combines approximately $36 billion in equity with $20 billion in debt financing, drawing $18 billion at closing. EA expects the deal to close in fiscal Q1 2027, pending shareholder approval, regulatory review, and other conditions. After the acquisition, EA will delist from public markets, ending its 36-year run as a publicly traded company.
EA’s headquarters will remain in Redwood City, California, with CEO Andrew Wilson continuing to lead the company through this transition.
For PIF, this acquisition directly supports Saudi Arabia’s Vision 2030 plan. If you are not aware, Saudi Arabia is pushing hard to diversify its economy beyond oil and expand into gaming, esports, and interactive entertainment. PIF has already invested heavily in the Savvy Games Group and other major gaming companies. Taking full control of EA gives it a new level of influence over global gaming culture.
Going private frees EA from the relentless quarterly earnings pressure that public companies face. This could allow the company to make bolder investments in research, development, and emerging technologies like AI-powered content, cloud gaming, and next-generation online services.
Major franchises such as Battlefield 6 and FIFA-alternative EA Sports FC could see longer development cycles and bigger budgets. Gamers might get higher-quality releases and fewer rushed launches with this buyout.
On the other hand, looking at the deal objectively, the $20 billion debt load is significant and will require strong, sustained revenue from live services, sports titles, and microtransactions.
