The gaming industry just witnessed its most seismic shift in history. Electronic Arts, the powerhouse behind Madden NFL, Battlefield, The Sims, and dozens of other beloved franchises, has agreed to be acquired for a staggering $55 billion – making it the largest leveraged buyout ever recorded. The deal, announced September 29, 2025, involves a consortium led by Saudi Arabia’s Public Investment Fund (PIF), private equity giant Silver Lake, and Affinity Partners, the investment firm run by Jared Kushner, son-in-law of former President Donald Trump.
This acquisition dwarfs every previous buyout in corporate history, surpassing the $32 billion TXU deal from 2007 and representing the second-largest gaming acquisition ever, trailing only Microsoft’s $69 billion purchase of Activision Blizzard. For EA shareholders, it means a windfall – $210 per share in cash, representing a 25% premium over the company’s stock price before acquisition rumors began swirling last week.
The Deal That Rewrites Gaming History
Under the agreement terms, the consortium will acquire 100% of Electronic Arts, with the Public Investment Fund rolling over its existing 9.9% stake rather than cashing out. This strategic move keeps Saudi Arabia deeply invested in EA’s future while providing the funding muscle needed for history’s largest private equity buyout.
The financial structure involves approximately $36 billion in equity contributions from the consortium partners, with the remaining $20 billion financed through secured debt from JP Morgan, using EA’s own assets as collateral. This leveraged approach allows the buyers to acquire the gaming giant without providing the full purchase price upfront, though it also saddles the company with significant debt obligations.
EA’s board of directors unanimously approved the transaction, which is expected to close in the first quarter of fiscal 2027 – roughly spring or summer 2026. Once completed, EA will be delisted from the NASDAQ, ending 36 years as a publicly traded company that began when the company went public in 1989.
Saudi Arabia’s Gaming Empire Expansion
The EA acquisition represents the crown jewel in Saudi Arabia’s aggressive push into global gaming markets. Through its $925 billion Public Investment Fund and subsidiary Savvy Gaming Group, the kingdom has been systematically building a gaming empire that now includes minority stakes in Nintendo, Take-Two Interactive, Nexon, and Embracer Group.
PIF’s gaming investments have already surpassed $13 billion, including outright acquisitions of ESL (competitive gaming), FACEIT (esports platform), and mobile game publisher Scopely. The fund also acquired a major stake in SNK (King of Fighters) and invested $3.5 billion in Niantic, the company behind Pokémon Go.
This massive investment strategy aligns with Saudi Arabia’s Vision 2030 initiative, aimed at diversifying the kingdom’s economy away from oil dependence. Gaming represents a key pillar of this transformation, with Saudi officials viewing the industry as both economically lucrative and culturally influential for engaging with younger global audiences.
The Jared Kushner Connection
The involvement of Jared Kushner’s Affinity Partners adds a fascinating political dimension to the deal. Kushner, who served as a senior advisor during Donald Trump’s presidency and maintains close ties to Saudi leadership, launched Affinity Partners in 2021 with significant backing from PIF and other Middle Eastern sovereign wealth funds.
Industry observers suggest Kushner’s participation could smooth regulatory approval processes, particularly given potential scrutiny of foreign investment in American entertainment companies. His existing relationships with both Saudi investors and U.S. regulatory bodies may prove valuable in navigating the complex approval process required for foreign acquisitions of major American corporations.
Kushner’s firm focuses on technology and healthcare investments, making the EA acquisition its highest-profile gaming sector entry. The partnership demonstrates how political connections can influence major business transactions, particularly in deals involving sovereign wealth funds from geopolitically sensitive regions.
What Changes for EA and Gamers
Andrew Wilson will remain as Chairman and CEO following the acquisition, providing continuity for EA’s strategic direction and day-to-day operations. The company will maintain its Redwood City, California headquarters, and initial statements suggest no immediate plans for major structural changes to game development studios or publishing operations.
Going private could provide EA with significant strategic advantages, including freedom from quarterly earnings pressures that often constrain long-term game development investments. Private ownership may allow for more experimental projects, longer development cycles, and strategic decisions focused on creative vision rather than stock market reactions.
However, the acquisition also raises questions about content oversight and creative independence. Saudi Arabia’s conservative social policies could potentially influence game content decisions, particularly regarding themes involving violence, sexuality, or political commentary that conflict with the kingdom’s values.
Industry Impact and Competitive Response
The EA acquisition sends shockwaves through the gaming industry, potentially triggering additional consolidation as competitors seek to match the resources and scale that Saudi backing provides. Publishers like Ubisoft, Take-Two Interactive, and Activision Blizzard (now part of Microsoft) must now compete against a rival with effectively unlimited financial resources.
The deal also highlights the growing influence of sovereign wealth funds in global entertainment industries. China’s Tencent has long dominated gaming investments, but Saudi Arabia’s aggressive expansion suggests a new geopolitical dimension to gaming industry ownership and control.
For employees, the transition to private ownership could mean different compensation structures, potentially including equity participation in the privately-held entity. However, it also removes the transparency and regulatory protections that come with public company status.
Regulatory Hurdles and Approval Timeline
The acquisition must clear several regulatory hurdles before completion, including approval from the Committee on Foreign Investment in the United States (CFIUS), which reviews foreign acquisitions of American companies for national security implications. EA’s significant presence in defense-adjacent gaming (military simulation, government contracts) may trigger additional scrutiny.
European regulators may also examine the deal’s competitive implications, particularly given EA’s dominant position in sports gaming through its FIFA/EA FC and Madden franchises. However, the private equity structure may face less antitrust scrutiny than strategic acquisitions by competing gaming companies.
Shareholder approval appears likely given the 25% premium offered, though some institutional investors may question the long-term implications of removing EA from public markets. The deal requires approval from holders of a majority of EA’s outstanding shares.
Financial Implications and Market Reaction
EA’s stock price surged following acquisition rumors last week, jumping 15% initially and gaining an additional 5% after deal confirmation. Trading above $200 per share on Tuesday, the stock approaches the $210 per share offer price, indicating strong investor confidence in deal completion.
The premium price reflects EA’s strong financial performance, with the company generating over $7 billion in annual revenue and maintaining profitable operations across multiple gaming segments. The acquisition multiple suggests buyers believe significant additional value can be unlocked through private ownership.
For the broader gaming sector, the deal establishes new valuation benchmarks and may encourage other publishers to explore strategic alternatives. The success of major gaming acquisitions by Microsoft and Sony has created a seller’s market for premier gaming assets.
Frequently Asked Questions
When will the EA acquisition be completed?
The deal is expected to close in the first quarter of fiscal 2027, roughly spring or summer 2026, pending regulatory approvals and shareholder consent.
How much will EA shareholders receive?
Shareholders will receive $210 per share in cash, representing a 25% premium over EA’s stock price before acquisition rumors emerged.
Who are the buyers in this consortium?
The consortium includes Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners, which is managed by Jared Kushner.
Will EA’s games change under new ownership?
Initial statements suggest no immediate changes to game development or content, with CEO Andrew Wilson remaining in his position and headquarters staying in California.
Is this the largest gaming acquisition ever?
It’s the second-largest gaming acquisition after Microsoft’s $69 billion purchase of Activision Blizzard, but it is the largest leveraged buyout in history.
What does this mean for EA employees?
No immediate layoffs or restructuring have been announced, though the transition to private ownership may bring changes to compensation structures and corporate governance.
Will EA games still be available on all platforms?
The acquisition shouldn’t affect platform availability, as EA operates as a third-party publisher across PlayStation, Xbox, PC, and mobile platforms.
Conclusion
The $55 billion acquisition of Electronic Arts represents more than just a business transaction – it’s a seismic shift that redefines the global gaming landscape. Saudi Arabia’s Public Investment Fund has secured ownership of one of gaming’s most influential publishers, controlling beloved franchises that reach hundreds of millions of players worldwide.
While the immediate impact on gamers may be minimal, the long-term implications are profound. EA’s transition to private ownership removes the transparency and shareholder accountability that comes with public company status, while placing creative control in the hands of investors whose primary allegiance lies with the Saudi kingdom. Whether this leads to more innovative games unburdened by quarterly earnings pressure or raises concerns about content oversight and creative independence remains to be seen.
What’s certain is that the gaming industry has entered a new era of sovereign wealth fund influence, where traditional business metrics compete with geopolitical objectives. As EA begins its journey as a private company backed by Saudi billions, the entire gaming world will be watching to see whether this historic deal delivers on its promises of accelerated innovation and transformative experiences, or serves as a cautionary tale about the intersection of entertainment and international politics.