REDWOOD CITY, California: Electronic Arts, the video game giant behind “Madden NFL,” “Battlefield,” and “The Sims,” will be taken private in a record US$55 billion buyout by a group of investors led by Saudi Arabia’s sovereign wealth fund, in what will be the largest private equity deal in history.
The consortium includes Saudi Arabia’s Public Investment Fund (PIF), Jared Kushner’s investment firm Affinity Partners, and private equity giant Silver Lake Partners. EA shareholders will receive $210 per share, a price that values the company far above previous record leveraged buyouts, including the $32 billion deal for Texas utility TXU in 2007.
PIF, already EA’s largest insider investor with a 9.9 percent stake, is rolling over its holding into the new entity. The fund has been aggressively expanding into gaming in recent years through its Savvy Gaming Group, with stakes in companies such as Nintendo and outright acquisitions including ESL, FACEIT, and Scopely. Analysts say the EA purchase represents its boldest and most significant move yet.
The deal, which still requires regulatory approval, is expected to face review by the U.S. Committee on Foreign Investment because of Saudi involvement. Trump administration officials have not commented, but President Donald Trump has historically maintained close ties with Saudi investors, including through LIV Golf tournaments hosted at Trump properties. That relationship is expected to weigh into how the deal is perceived.
If completed, the transaction will end EA’s 36-year run as a publicly traded company. Founded in 1982 by former Apple executive William “Trip” Hawkins, EA went public in 1989 at a split-adjusted 52 cents per share. It has since become one of the world’s most prominent video game publishers, with sports franchises like “FIFA” and “Madden” anchoring its revenues.
CEO Andrew Wilson, who has been in charge since 2013, will remain in his role after the buyout. Kushner said he was “excited” to back a company he grew up playing, while Silver Lake pointed to long-term growth opportunities that could be pursued away from the scrutiny of public markets.
Some analysts, however, argue the $210 per share price undervalues EA’s pipeline. Mike Hickey of Benchmark said the upcoming launch of “Battlefield 6” and future titles could add $2 billion in bookings by 2028. Others, like Nick McKay of Freedom Capital Markets, said the buyout provides stability and financial backing at a time when EA’s revenues have stalled between $7.4 and $7.6 billion annually.
EA shares rose 4.5 percent on September 29, building on a 15 percent jump over the weekend when reports of a takeover first emerged. Pending shareholder approval, the deal is expected to close in the first quarter of fiscal 2027.