Electronic Arts to go private in $55 billion Saudi-backed buyout

Videogame developer Electronic Arts (EA) is going private in a $55 billion all-cash deal backed by Saudi Arabia’s Public Investment Fund, technology-focused investment firm Silver Lake, and Affinity Partners, the investment vehicle founded by Jared Kushner.

EA’s board has unanimously approved the transaction, which values the company at $210 per share and is expected to close in the first quarter of fiscal 2027 pending shareholder and regulatory approval.

The deal, one of the largest private buyouts in gaming history, will be funded through roughly $36 billion in equity and $20 billion in debt.

JPMorgan is leading the financing.

Saudi Arabia’s PIF, which already owns nearly 10% of EA, will roll over its stake as part of the equity contribution.

EA’s leadership, including CEO Andrew Wilson, will remain in place, and the company will continue to operate from its headquarters in Redwood City, California.

EA, founded in 1982 by Trip Hawkins, has evolved into one of the industry’s most enduring names.

It controls a stable of successful franchises including EA Sports FC, Madden NFL, Battlefield, Apex Legends and The Sims.

The company has also acquired top-tier studios such as BioWare, DICE and Respawn, and operates global development centers along with a proprietary digital platform, the EA App.

The transition to private ownership is designed to remove the pressures of quarterly earnings and allow EA to take longer-term bets on live services, licensed sports content and global expansion, the company said.

EA has been leaning more heavily on recurring revenue from in-game purchases and seasonal updates across its biggest properties, especially in its sports lineup.

The company sees the deal as a chance to double down on that strategy without needing to meet short-term investor expectations.

Silver Lake, which has stakes in companies like Endeavor and Unity, said it believes EA has the potential to become a much larger digital entertainment powerhouse and that the buyout gives it room to experiment and scale.

Egon Durban, co-CEO of Silver Lake, will join EA’s board post-transaction.

Kushner, who founded Affinity Partners after serving as a White House senior adviser, described the deal as a personal investment and said he has long admired EA’s work in global entertainment.

Saudi Arabia’s involvement is part of a broader push to diversify its economy beyond oil and position itself in global gaming and digital media.

Through PIF and its dedicated arm Savvy Games Group, the kingdom has made large bets in esports, game development and publishing, and now adds full ownership of a top-tier Western game company.

The transaction is likely to face scrutiny from regulators, especially given growing scrutiny of foreign and particularly sovereign involvement in technology and media assets.

EA said it will fully cooperate with authorities in the US and other jurisdictions.

Once the deal closes, EA will be delisted from public stock exchanges and operate as a private company under the new ownership group.

While no immediate changes to EA’s structure or workforce have been announced, the shift opens the door for future strategic moves, including internal reorganizations, realignment of studios and changes in intellectual property licensing.

Analysts said that while the move gives EA more strategic flexibility, the pressure to meet investor returns on the $55 billion purchase will remain, especially with large debt on the books.