Landmark $55 Billion Take-Private Deal for Electronic Arts
Electronic Arts has agreed to be acquired in a landmark $55 billion all-cash transaction that will take the video game publisher private. The buyer group consists of the Public Investment Fund of Saudi Arabia (PIF), Silver Lake, and Affinity Partners. Under the terms of the agreement, EA shareholders will receive $210 per share in cash, a premium to the company’s recent trading levels prior to media reports of a potential deal.
The transaction immediately positions EA as the centerpiece of one of the largest gaming-focused investment platforms globally. It is structured as an all-cash buyout, giving existing shareholders certainty of value and immediate liquidity. The size and structure of the deal underscore the long-term conviction of the acquiring consortium in the durability of EA’s franchises and the growth trajectory of the broader video game industry.
Shareholder Value: $210 Per Share Cash Consideration
Premium Pricing and Market Reaction
EA shareholders are slated to receive $210 per share in cash as part of the take-private transaction. This price represents a notable premium to EA’s prior close before reports surfaced about the company nearing a deal to go private. After initial media coverage indicated a potential transaction, EA’s stock gained about 15%, closing at $193.35. Following the official announcement of the acquisition, EA’s shares climbed a further 4.5% on Monday trading.
For investors, the cash consideration effectively crystallizes the value of EA’s portfolio of franchises—such as Battlefield, The Sims, and the Madden NFL series—at a substantial valuation multiple, reflecting both the current earnings power and the perceived long-term growth opportunities in gaming.
PIF’s Existing Stake and Majority Ownership
The Public Investment Fund is rolling over its existing 9.9% stake in EA into the new private structure. With that rollover and additional capital, PIF will be, by far, the majority investor in the post-transaction company, according to people close to the deal. This move aligns PIF with the long-term strategic direction of EA, while allowing public shareholders to exit at a premium valuation.
Financing Structure and Record-Setting Leveraged Buyout
Equity Commitment and Debt Financing
The buyer consortium is committing a total of $36 billion in equity to the transaction. The remainder of the $55 billion purchase price will be financed with $20 billion in debt, arranged by JPMorgan. According to the deal announcement and people familiar with the transaction, JPMorgan was brought into the process a couple of weeks prior to the announcement to structure and provide the necessary debt package.
This blend of substantial equity capital and large-scale debt financing is characteristic of modern mega-cap leveraged buyouts, where sponsors seek to maintain both financial flexibility and meaningful long-term ownership stakes.
Largest Leveraged Buyout in Wall Street History
The take-private deal for EA is set to be the largest leveraged buyout in Wall Street history. That status reflects both the scale of the video game industry and the strategic importance of owning established, global intellectual property in interactive entertainment. Compared with prior LBOs in other sectors, this transaction stands out not only for its size but also for its focus on digital content, live services, and recurring revenue models inherent in major game franchises.
For the leveraged finance markets, the EA buyout demonstrates strong lender appetite for high-profile, cash-generative technology and media assets. The debt component supported by JPMorgan signals confidence in EA’s ability to service leverage through ongoing sales of games, live service content, and associated digital revenue streams.
Strategic Role of the Public Investment Fund in Global Gaming
PIF’s Gaming Expansion Through Savvy Gaming Group
The EA acquisition is described by analysts at Raymond James as the biggest move to date in a “recent gaming spree” by the Saudi Public Investment Fund. PIF has been active in gaming since 2022, primarily through its gaming arm, Savvy Gaming. Savvy Gaming has taken stakes in public video game publishers and has acquired key assets across competitive gaming and mobile content.
Among its prior initiatives, Savvy Gaming has purchased ESL and FACEIT, both major players in esports infrastructure and tournament operations, as well as Scopely, a prominent mobile game company. The EA deal extends this strategy significantly, adding one of the most recognized global publishers to PIF’s portfolio and tying together a chain of assets across traditional console, PC, and mobile gaming ecosystems.
Strategic Rationale: IP, Live Services, and Global Reach
With EA under its umbrella, PIF gains direct control of a company that owns some of the world’s most enduring gaming franchises. Battlefield, The Sims, and the Madden NFL series are all examples of long-lived IPs that support recurring revenue through annual releases, live services, and digital content. This complements PIF’s earlier investments in platforms and developers, creating potential synergies in esports, content distribution, and cross-franchise monetization.
For PIF, the acquisition fits into a broader diversification strategy aimed at building exposure to technology, media, and entertainment sectors with global customer bases. Ownership of a company like EA also positions PIF to influence the future of interactive entertainment, from sports gaming to simulation and live-service experiences.
Silver Lake and Affinity Partners: Technology and Political Connectivity
Silver Lake’s Technology Private Equity Expertise
Silver Lake, co-led by co-CEOs Egon Durban and Greg Mondre, brings extensive experience in large-scale technology and digital media transactions. The firm has an established track record investing in high-profile technology platforms and is also one of the key investors in efforts to bring TikTok under U.S. control.
In the EA transaction, Silver Lake’s role underscores the financial sponsor community’s confidence in gaming as a core pillar of the broader technology ecosystem. The firm’s involvement adds a layer of operational and strategic expertise that can support EA’s evolution as a private company, including potential expansions into adjacent tech segments, data-driven monetization, and content distribution partnerships.
Affinity Partners and Jared Kushner’s Public Statement
Affinity Partners, led by CEO Jared Kushner, is also a member of the buying group. Kushner publicly emphasized EA’s “bold vision for the future,” highlighting the company’s ability to create “iconic, lasting experiences.” He noted his personal connection to EA’s products, describing how he grew up playing the company’s games and now enjoys them with his children, reinforcing the intergenerational appeal of EA’s franchises.
This personal endorsement reflects a key aspect of the investment thesis: the emotional durability and cultural relevance of EA’s games. From sports simulations to expansive virtual worlds, EA’s titles are not only revenue drivers but also cultural touchpoints that extend across age groups and geographies.
EA’s Leadership, Employee Messaging, and Strategic Continuity
Andrew Wilson’s Ongoing Role as CEO
In a note to employees, EA CEO Andrew Wilson confirmed that he is “excited to continue as CEO” following the acquisition. This continuity at the top suggests that the buyer group intends to build on EA’s current strategic direction rather than undertake a radical restructuring.
Wilson emphasized that the new partners bring “deep experience across sports, gaming, and entertainment.” This breadth is particularly relevant for EA, whose portfolio is heavily weighted toward sports franchises and live-service titles that benefit from cross-media partnerships, brand collaborations, and global licensing agreements.
Commitment to EA’s People, Leadership, and Long-Term Vision
According to Wilson’s communication, the acquiring consortium is “committed with conviction to EA” and strongly believes in the company’s people, leadership, and long-term vision. The emphasis on conviction and long-term alignment is notable given the scale of the leveraged buyout and the requirement for consistent performance post-transaction.
For employees, this messaging is designed to signal stability and continuity while also highlighting the opportunity to accelerate EA’s strategy with the backing of deep-pocketed, strategically aligned investors. For partners and license holders, it reassures that EA’s core leadership remains intact and that the company will continue to invest in its franchises and technology platforms.
Deal Timeline, Go-Shop Period, and Closing Expectations
First Quarter Fiscal 2027 Closing Target
The transaction is expected to close in the first quarter of EA’s fiscal 2027, subject to closing conditions that typically include shareholder approvals and regulatory clearances. The extended timeline reflects the complexity of a $55 billion leveraged buyout in a highly scrutinized sector that touches technology, media, and international capital flows.
For market participants, this closing horizon sets expectations around when EA will likely delist from public markets and transition fully into private ownership. Until closing, EA continues to trade publicly, with its stock price reflecting both the agreed takeout price and any perceived risk that the transaction could be delayed or altered.
45-Day Window for Alternative Proposals
The agreement includes a 45-day window to allow for other proposals, commonly referred to as a “go-shop” period. During this window, EA can entertain and evaluate potential alternative bids that might offer superior value to shareholders.
This structure provides a formal mechanism to test the market and ensure that the $55 billion offer and $210 per share cash consideration represent the best available outcome for investors. While the buyer consortium led by PIF, Silver Lake, and Affinity has set a high bar with a record-breaking LBO valuation, the presence of a go-shop underscores standard corporate governance practices aimed at maximizing shareholder value.
Impact on EA’s Market Presence and Investor Base
Transition From Public Market Scrutiny to Private Ownership
With the completion of the deal, EA will shift from a publicly traded company—subject to quarterly reporting and short-term market pressures—to a privately held enterprise. This transition enables longer-term planning cycles, more flexibility in capital allocation, and potentially larger, more experimental bets on new IP, technologies, and business models without the same degree of public market scrutiny.
However, public investors lose direct exposure to EA’s performance and future upside, exchanging that potential for the certainty of cash at $210 per share. Index funds and long-term institutional holders will reallocate capital to other public opportunities, while the new private owners assume both the risk and reward tied to EA’s long-term strategic execution.
Continued Focus on Flagship Franchises and Growth
The central logic of the acquisition rests on EA’s ability to continue growing its flagship franchises and to expand its live services, esports presence, and cross-platform offerings. Battlefield, The Sims, and the Madden NFL series are core pillars of that strategy, providing recurring revenue streams and strong brand recognition in a competitive market.
With substantial backing from PIF, Silver Lake, and Affinity, EA will have access to significant resources for content creation, marketing, and technological innovation. This could include deeper investments in new game engines, AI-driven game design, expanded esports ecosystems through existing PIF assets like ESL and FACEIT, and enhanced mobile and cross-play experiences, all anchored in EA’s established IP.
Questions and Answers on EA’s $55 Billion Take-Private Deal
What are EA shareholders receiving in the take-private deal?
EA shareholders will receive $210 per share in cash as part of the $55 billion acquisition by the Public Investment Fund of Saudi Arabia, Silver Lake, and Affinity Partners. This all-cash consideration provides immediate liquidity and represents a premium to the company’s trading price before reports of the deal surfaced. The structure allows investors to exit fully, with no requirement to roll over equity into the new private entity.
Who are the main investors behind the EA acquisition?
The buyer group is led by the Public Investment Fund of Saudi Arabia, along with Silver Lake and Affinity Partners. PIF is rolling over its existing 9.9% stake and will become the clear majority investor. Silver Lake contributes deep experience in technology and media private equity and is also a key investor in efforts to bring TikTok under U.S. control. Affinity Partners, led by CEO Jared Kushner, adds additional capital and strategic orientation, with Kushner publicly highlighting EA’s history of creating iconic, enduring game experiences.
When is the EA deal expected to close, and can other bidders emerge?
The transaction is expected to close in the first quarter of EA’s fiscal 2027, subject to customary approvals. There is a 45-day window in the agreement that allows EA to consider other proposals, providing an opportunity for alternative bidders to submit superior offers. During this period, EA’s board can evaluate any competing bids in order to ensure that shareholders receive the best possible value, while the existing consortium’s $55 billion offer serves as the benchmark.
Meta description: In-depth analysis of Electronic Arts’ $55 billion all-cash take-private deal at $210 per share, detailing PIF’s majority role, record-setting leveraged buyout financing, Silver Lake and Affinity involvement, EA leadership continuity, and the 45-day window for competing bids.
