Electronic Arts, the publisher behind Madden, Battlefield, The Sims, and the Star Wars games, is being taken private in a historic $55 billion deal.
The buyout group includes Jared Kushner’s private equity firm Affinity Partners, Saudi Arabia’s Public Investment Fund (PIF), and Silver Lake.
The Biggest Buyout Ever
The deal values EA at $210 per share, about a 25% premium over its recent trading price. That makes it the largest leveraged buyout in history.
Backers will finance the transaction with a $20 billion loan from JPMorgan Chase. The deal is expected to close in 2026, pending shareholder approval and regulatory review. If the board walks away, EA would owe investors a $1 billion breakup fee.
Who’s Leading The Buyout?
Saudi Arabia’s Public Investment Fund already holds about 10% of EA and has been aggressively expanding in gaming, including creating Savvy Games Group and hosting the $70 million Esports World Cup.
Jared Kushner’s Affinity Partners brings political weight. Kushner, Donald Trump’s son-in-law, has deep ties to Saudi Arabia, which committed billions to his firm.
Silver Lake is one of the biggest private equity players in tech, with past mega-deals including Dell.
Why Saudi Arabia Wants EA
The Saudis are diversifying away from oil and see gaming as the next global growth market. EA’s franchises like Madden and FIFA (now EA Sports FC) make it a sports-gaming juggernaut, while blockbuster series like Battlefield and Star Wars Jedi give it mainstream reach.
Analysts, via the NY Times, believe the new owners may push more EA titles into free-to-play formats, with in-app purchases and mobile/streaming expansion to grow audiences worldwide.
National Security Concerns
The Committee on Foreign Investment in the U.S. will review the buyout. Some lawmakers have already raised concerns about Saudi ownership of entertainment platforms that collect large amounts of user data.
Still, given the Trump family’s ties to Riyadh, observers expect the deal to clear. Jared Kushner is also married to Trump’s daughter, Ivanka Trump.
What’s Next For EA
EA CEO Andrew Wilson, who will remain in charge, praised the deal as recognition of the company’s creative teams in an official statement. “I am more energized than ever about the future we are building,” he said.
The company will continue to be based in Redwood City, California, but with private ownership, expect big shifts in how EA games are made, sold, and monetized.
