EA Set for Record $55 Billion Buyout by Saudi-Led Consortium

Electronic Arts (EA), the renowned video game publisher behind franchises such as "Battlefield," "The Sims," and "Madden NFL," has agreed to a $55 billion leveraged buyout by a consortium comprising Saudi Arabia's Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners, an investment firm founded by Jared Kushner. This transaction, announced on September 29, 2025, is set to be the largest leveraged buyout in history, surpassing the previous record of TXU Energy's $32 billion acquisition in 2007.

Under the terms of the agreement, EA shareholders will receive $210 per share in cash, representing a 25% premium over the stock's closing price on September 25, 2025. The deal is structured with approximately $36 billion in equity from the consortium and $20 billion in debt financing provided by JPMorgan Chase. The transaction is expected to close in the first quarter of fiscal year 2027, pending shareholder and regulatory approvals.

The PIF, which already held a 9.9% stake in EA, will roll over its existing investment as part of the transaction. This move aligns with Saudi Arabia's broader strategy to diversify its economy by investing in the gaming and entertainment sectors. Silver Lake, known for its investments in technology and entertainment companies, brings experience from previous acquisitions such as Dell and Endeavor. Affinity Partners, founded in 2021 by Jared Kushner, focuses on growth equity, financial services, and technology investments.

EA's CEO, Andrew Wilson, will continue to lead the company, which will maintain its headquarters in Redwood City, California. Wilson emphasized that EA's core values and commitment to its global player base will remain unchanged under the new ownership.

This acquisition underscores a growing trend in the gaming industry, where major franchises are increasingly leveraged across multiple media platforms, including film and television. EA's extensive intellectual property portfolio positions it well to capitalize on this trend, with projects like "The Sims" already set for a film adaptation by MGM Studios.

The deal also reflects the confidence of deep-pocketed investors in the enduring value of blockbuster game franchises, even as the industry navigates a post-pandemic slowdown. Analysts note that while the consolidation of intellectual property in fewer, larger franchises can increase long-term value, it also carries financial risks due to high development costs.

As of October 2, 2025, EA's stock is trading at $201.04 per share, with a market capitalization of approximately $40 billion.

The acquisition is subject to review by the Committee on Foreign Investment in the United States (CFIUS) due to the involvement of foreign investors and potential national security considerations. However, given the political connections involved, the deal is expected to receive the necessary approvals.

Saudi Arabia's investment in EA aligns with its broader strategy to diversify its economy by investing in the gaming and entertainment sectors. This move is part of the kingdom's Vision 2030 plan to transform its global image and reduce its dependence on oil revenues.

The involvement of Jared Kushner's Affinity Partners, backed in large part by sovereign wealth funds from Middle Eastern countries, highlights the intersection of financial interests and geopolitical aspirations in this deal.

As the gaming industry continues to evolve, this acquisition positions EA to leverage its strong portfolio of intellectual properties across various media platforms, potentially leading to new growth opportunities and expanded audience engagement.