Electronic Arts Acquired in Record $55 Billion Deal: Largest Leveraged Buyout in History
Electronic Arts (EA), the powerhouse behind Battlefield, Madden NFL, and The Sims, has agreed to sell itself in what is now the largest leveraged buyout in corporate history. The $55 billion deal marks a significant turning point for one of the gaming industry’s most influential publishers, raising new questions about the future of entertainment, investment, and gaming culture.
Who is buying EA?
The acquisition is being spearheaded by a consortium of high-profile investors:
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Saudi Arabia’s Public Investment Fund (PIF) – a $1 trillion sovereign wealth fund that has aggressively expanded into global sports and entertainment.
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Affinity Partners, an investment firm founded by Jared Kushner, former White House adviser and son-in-law of the U.S. president.
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Silver Lake, a California-based private equity firm specializing in technology and media ventures.
Together, the group agreed to pay $210 per share in cash—a 25% premium over EA’s stock price before news of the negotiations broke last week. Remarkably, the offer even surpasses EA’s all-time high stock price of $179, set in August.
Following the announcement, EA’s stock surged, climbing 15% on initial rumors and another 5% after confirmation, trading above $200 on Tuesday.
EA’s 36-year run as a public company ends
Founded in 1982, Electronic Arts went public in 1989 and grew into one of the most successful gaming publishers in history. Its franchises—including FIFA (now EA Sports FC), Battlefield, Madden NFL, Mass Effect, and The Sims—became household names, selling hundreds of millions of copies worldwide.
Once the buyout is finalized, expected by spring or summer 2026, EA will be delisted from the NASDAQ and will no longer be required to release quarterly earnings reports. This shift to private ownership means the company can operate with more flexibility but less public transparency.
Financing the record-setting deal
The purchase is being funded by a combination of equity and debt:
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Roughly $36 billion in equity from the three buying partners, including PIF’s existing 9% stake in EA, which will roll into the deal.
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$20 billion in debt financing provided by JPMorgan Chase, with about $18 billion of that earmarked to complete the buyout.
This financing structure makes the deal the largest leveraged buyout in history, surpassing previous mega-acquisitions in the tech and gaming sectors.
Why regulators are unlikely to interfere
Unlike Microsoft’s $69 billion acquisition of Activision Blizzard, which faced heavy antitrust scrutiny, this transaction is not a merger of direct competitors. Instead, it is essentially a financial transfer of ownership. Analysts believe regulators are unlikely to block the deal, though it still requires approval from EA shareholders and relevant authorities.
Shareholders are widely expected to support the move, given the significant cash profits they will receive.
Jared Kushner praises EA
Jared Kushner, whose firm Affinity Partners is part of the consortium, expressed personal enthusiasm for the deal.
“I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games—and now enjoys them with my kids—I couldn’t be more excited about what’s ahead,” Kushner said.
His close ties with Middle Eastern leaders during his White House tenure are seen as key to forging the alliance between Saudi Arabia’s PIF and U.S.-based investors.
What happens next for EA?
For now, EA has confirmed that its operations will remain unchanged. CEO Andrew Wilson will continue to lead the company, and its studios—including Bioware (Mass Effect, Dragon Age) and Maxis (The Sims, SimCity)—will retain their current structures.
However, major ownership changes often lead to shifts in creative direction, budgets, and strategic priorities. As EA transitions to private ownership, industry experts are watching closely to see how new investors influence game development, release cycles, and monetization strategies.
Mixed reactions from the gaming community
Initial responses from fans, developers, and gaming commentators have been largely negative. On social media platforms like X (formerly Twitter), many gamers expressed fears that the buyout could lead to:
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Increased commercialization and profit-driven decision-making.
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Further reliance on microtransactions, a long-standing criticism of EA.
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Reduced creative freedom for developers under pressure from new financial stakeholders.
Gaming journalists and streamers also raised concerns that Saudi Arabia’s growing role in global entertainment could reshape the industry in ways that prioritize political and financial interests over community and artistic values.
Still, some analysts note that going private could give EA more room to take creative risks, as the company will no longer face the relentless quarterly earnings pressure of Wall Street.
Why this matters beyond gaming
The deal is significant not only for gamers but also for the broader tech and entertainment industries. At $55 billion, it reflects:
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The rising value of gaming as a dominant form of global entertainment, surpassing film and music combined.
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Saudi Arabia’s strategy to diversify its economy and expand its “soft power” influence through sports, media, and digital culture.
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A growing trend of private equity and sovereign wealth funds investing heavily in technology and interactive media.
With gaming’s audience projected to surpass 3.5 billion players worldwide by 2030, high-profile buyouts like this signal how crucial the sector has become for investors and governments alike.
Looking ahead
Electronic Arts now enters a new era. The company that once revolutionized the gaming industry with sports simulations, open-world RPGs, and blockbuster shooters is about to become the centerpiece of the largest private equity-backed gaming acquisition in history.
While shareholders celebrate record profits, fans and developers are left wondering: will EA’s new owners preserve the creativity and innovation that made its franchises iconic, or will financial pressures dominate the company’s future?
For now, the spotlight remains on EA, its leadership, and its investors as the gaming world braces for the impact of this historic deal.