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Electronic Arts to Go Private in Historic $55 Billion Buyout

Under the terms of the deal, EA shareholders will receive $210 per share in cash - a premium of roughly 25 percent over EA’s closing price before takeover rumors surfaced.
By 4 Mins Read
Electronic Arts

Electronic Arts (EA) announced Monday that it has agreed to be taken private in a leveraged buyout valued at approximately $55 billion. The transaction, led by private equity firm Silver Lake, Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF), and Jared Kushner’s Affinity Partners, marks the largest-ever leveraged buyout in U.S. corporate history.

Under the terms of the deal, EA shareholders will receive $210 per share in cash – a premium of roughly 25 percent over EA’s closing price before takeover rumors surfaced. The offer ascribes an equity value of around $52.5 billion, with the remainder financed via debt.

The financing package includes some $36 billion in equity contributions and approximately $20 billion in debt, of which $18 billion is expected to be drawn at closing. The deal is expected to close by the first quarter of EA’s fiscal 2027 year, subject to customary regulatory and shareholder approvals.

At a news event announcing the transaction, Jared Kushner, whose investment firm Affinity Partners is a key participant, said, “Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future.” The consortium’s backers, including PIF and Silver Lake, have emphasized their belief in EA’s long-term potential, especially in unlocking new growth opportunities outside the pressure of quarterly public market scrutiny.

EA will be delisted from public markets, but the company’s headquarters in Redwood City, California, and its current leadership—including CEO Andrew Wilson—are expected to remain in place.

This deal is widely viewed as a watershed moment in mergers and acquisitions in the tech and gaming sectors. It surpasses the previous record for a leveraged buyout, held by the 2007 acquisition of TXU Energy.

The all-cash nature of the transaction further underscores the high stakes and confidence the investors place in EA’s ability to deliver returns.

EA’s decision to go private comes at a critical juncture. In recent months, the company has faced headwinds in its performance forecasts and has undertaken major cost-cutting measures including layoffs and project cancellations.

Earlier in 2025 EA cut approximately 300 to 400 jobs, closed studios, and canceled in-development projects such as a Titanfall installment and a Black Panther game. These moves were part of EA’s strategy to streamline operations and focus on core, high-value franchises.

The underlying rationale for going private is to provide EA with greater flexibility to invest in long-term innovation—particularly given uncertainties in consumer spending, intensifying competition, and the growing demands of game development costs.

Analysts have had mixed reactions to the deal. Some argue that the $210 per share offer, while generous relative to the trading price, may undervalue EA’s potential upside—especially with anticipated revenue growth from new titles such as Battlefield 6 and deeper monetization of EA’s sports franchises.

According to Benchmark analysts, “While the $210 per share offer price may appear compelling … we believe it falls materially short of the company’s intrinsic value.” Others argue that the debt burden imposed on EA, typical of large leveraged buyouts, could constrain future investment if revenue growth fails to meet expectations.

The background to this transaction reveals converging strategic trends in technology, gaming, and sovereign investment policy. The PIF, which already held a roughly 9.9 percent stake in EA, has in recent years pursued aggressive expansion into the gaming sector through its gaming investment arm, Savvy Games Group.

PIF has invested in multiple major game publishers and has signaled that interactive entertainment is a central pillar of its vision to diversify Saudi Arabia’s economy beyond oil.

For Saudi Arabia, this deal represents a major stake in one of the world’s preeminent content creators. Silver Lake, by contrast, brings deep experience in tech and media deals, and the partnership with Kushner’s Affinity Partners is expected to ease potential regulatory scrutiny in the U.S. review process.

EA’s trajectory has already been shaped by strategic pivots. Over its four-decade history, the company has grown from publishing PC and console titles to becoming a powerhouse in digital distribution, live services, and in-game monetization.

It owns major studios such as BioWare, DICE, Respawn Entertainment, and Criterion Games, and hosts flagship franchises including Madden NFL, EA Sports FC (formerly the FIFA series), Battlefield, The Sims, and Apex Legends.