Video gamer Electronic Arts to be bought in largest-ever private equity buyout valued at $55 billion
Electronic Arts, the publisher behind hit franchises like Madden NFL, Battlefield, and The Sims, is set to be taken private in what would be the largest private equity-funded buyout in history.
The $55 billion deal comes from an investor group led by Saudi Arabia’s Public Investment Fund (PIF), the private equity firm Silver Lake Partners, and Affinity Partners, a firm managed by Jared Kushner, President Donald Trump’s son-in-law. EA shareholders will receive $210 per share, well above past leveraged buyout records, including the $32 billion purchase of TXU Energy in 2007.
The PIF already holds a 9.9% stake in EA and will roll over its existing investment as part of the deal. Analysts note that this move aligns with Saudi Arabia’s aggressive expansion into the gaming sector through its Savvy Gaming Group, which has already acquired ESL, FACEIT, and Scopely, while also taking minority stakes in major publishers.
The transaction still requires approval from the Committee on Foreign Investment in the U.S., given the involvement of foreign capital. However, observers believe it stands a strong chance of approval. Some point to President Trump’s generally favorable stance toward Saudi investments, citing past business ties such as Saudi-backed LIV Golf hosting tournaments at Trump-owned properties.
If finalized, the deal would end EA’s 36-year run as a publicly traded company. EA first went public in 1989, with shares debuting at a split-adjusted price of just 52 cents. Founded in 1982 by William “Trip” Hawkins, EA grew into one of the most influential gaming publishers in the world.
CEO Andrew Wilson, who has led EA since 2013, will continue in his role, with the company’s headquarters remaining in Redwood City, California.
Kushner expressed enthusiasm about the deal, saying he grew up playing EA titles and now enjoys them with his children. He described the investment as a way to help EA “create iconic, lasting experiences” for future generations.
The gaming industry has become a magnet for major investors in recent years. In 2023, Microsoft closed its $69 billion acquisition of Activision Blizzard, while competition from mobile-focused publishers like Epic Games continues to intensify.
Going private could give EA more flexibility to pursue long-term strategies without the pressure of quarterly earnings reports. However, analysts are split on whether the $210 per share offer undervalues the company. Some argue EA’s upcoming titles and long-term pipeline could significantly boost earnings, while others believe the guaranteed payout is a reasonable choice for shareholders.
Either way, the deal underscores how valuable major gaming publishers have become on the global stage—and how geopolitics, finance, and entertainment are increasingly intertwined.
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