Electronic Arts (EA) announced on Monday that it will be acquired for $55 billion in an all-cash deal, the largest leveraged buyout ever recorded. The agreement, reached after days of speculation, will see the gaming giant taken private by a consortium of international investors.
Who Is Buying EA
The purchasing group includes Saudi Arabia’s Public Investment Fund (PIF), which already owned nearly 10 percent of EA’s shares, alongside the private equity firm Silver Lake and Affinity Partners, an investment company created by Jared Kushner following Donald Trump’s first term in office. Together, the three parties will assume full ownership of EA once the deal closes.
The agreement values EA at $210 per share, representing a 25 percent premium on the company’s stock price before news of the talks became public on September 25. Financing will combine cash contributions from the consortium with $20 billion in debt arranged through JPMorgan Chase.
EA confirmed that its chairman and chief executive, Andrew Wilson, will continue to lead the company after the transition. Once the transaction is finalized, the company’s shares will be removed from public markets. The process is expected to conclude in the first quarter of fiscal year 2027, subject to shareholder approval and regulatory clearance.
Why the Deal Matters
Analysts say the move to take EA private will give the company room to reorganize without the immediate pressure of quarterly earnings. The new ownership group sees potential in EA’s extensive portfolio, which includes globally recognized franchises such as Madden NFL, The Sims, and Apex Legends.
Industry observers believe the consortium may push for significant changes, including an expanded presence in the free-to-play mobile market and further investment in live-service games. The fresh infusion of capital is expected to accelerate innovation at a time when EA has struggled with stagnating revenues and rising competition.
Reports of the buyout lifted EA’s stock by nearly 15 percent before the official confirmation. Shareholders have welcomed the premium offered in the deal, but the wider gaming community has reacted more cautiously. Criticism has centered on the involvement of the Saudi Public Investment Fund and Affinity Partners, whose political connections have drawn concern from some developers and players.
If approved, the acquisition will reshape not only EA’s future but also the broader gaming industry. The record-breaking deal underscores how valuable gaming intellectual property has become in the global investment market.