Electronic Arts, the maker of Battlefield, EA FC and The Sims, agreed to sell itself for $55 billion in a deal led by Saudi Arabia’s Public Investment Fund, Jared Kushner’s Affinity Partners and private equity firm Silver Lake. The transaction values the company at $210 a share, a roughly 25 percent premium to recent trading, and would be the largest leveraged buyout on record. The consortium will contribute about $36 billion in equity, including a stake already held by the Saudi wealth fund, while lenders will provide roughly $20 billion in debt financing underwritten by JPMorgan.
Company and investor statements said about $18 billion of that debt will be financed at closing. The deal will take EA off public markets and delist it from Nasdaq. EA’s board has approved the sale and CEO Andrew Wilson will remain in post, the company said. Wilson called the transaction a “powerful recognition” of the firm’s work and said the investors will help “create transformative experiences to inspire generations to come.” Analysts and industry figures said the deal reflects the enduring value of EA’s sports franchises and other blockbuster titles, but they also flagged risks tied to the heavy debt load.
Christopher Dring, an industry expert, said the need to service about $20 billion in debt could put pressure on EA’s operating budget and influence investment and staffing decisions at a time when the company is preparing launches such as Battlefield 6.
“Revenue from big game stories like EA FC, Madden and Battlefield will be needed to service this debt,” Dring said. “That may impact EA’s ability to invest in new games.”
For Saudi Arabia’s Public Investment Fund, this purchase is more than a business deal. It is part of a bigger push to move the kingdom’s money into entertainment and gaming, not just oil and infrastructure.
The fund has already put cash into mobile and online game companies and helped bring big esports tournaments to the region, so buying EA gives it a seat at the table with one of the most recognizable names in games. The deal also brings a political and private equity angle because Affinity Partners, set up by Jared Kushner, and Silver Lake are in on it. Kushner said he has long admired EA and is excited to back the company. Affinity has pulled in money from investors in the Middle East and beyond since it launched in 2021.
Lawyers and industry analysts say this is a change of ownership rather than a merger between competitors, so it is unlikely to trigger the same antitrust headaches that hit Microsoft’s Activision Blizzard bid. Still, the size of the leveraged buyout has already had people digging up memories of big deals that later ran into trouble, like the $45 billion TXU buyout in 2007 and the leveraged purchases of Toys R Us and Hertz. Investors liked the news. EA shares jumped after the rumors and traded above $200 after the announcement, reflecting the roughly 25 percent premium on the pre-deal price.
The sale will give EA shareholders an immediate cash return, but it also means the company will no longer have to publish quarterly results or answer public market scrutiny. Private ownership could free EA to pursue longer term projects that might not satisfy quarterly targets, supporters of the deal said. Others warned that private equity ownership often brings pressure to increase cash flow and reduce costs. The deal also brought renewed attention to the PIF and concerns about the kingdom’s human rights record. The fund is controlled by Crown Prince Mohammed bin Salman, and critics and human rights groups have pointed to allegations surrounding the killing of journalist Jamal Khashoggi.
Saudi officials have repeatedly denied state responsibility for the killing. EA said the transaction is expected to close in the first quarter of its fiscal year 2027, subject to customary approvals from shareholders and regulators. The agreement includes provisions requiring the company to pay a $1 billion fee if the board reverses course, accepts a higher bid, or pursues another deal within a year of a shareholder rejection.
The consortium would also face penalties if regulatory delays push completion past certain dates. The purchase marks a dramatic milestone in the global games industry. For more than 30 years EA has produced best selling franchises, including football titles that have sold hundreds of millions of copies, and studios such as BioWare and Maxis. How the company balances investor demands, creative priorities and a sizable debt load will be closely watched by players, developers and markets alike
