Electronic Arts Sold for $55 Billion in Record-Breaking Buyout
Electronic Arts (EA), one of the world’s largest video game publishers, has agreed to be acquired in a $55 billion deal, marking the biggest leveraged buyout in history. The consortium of buyers includes Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners, led by Jared Kushner.
EA Goes Private in $210 Per Share Agreement
Under the terms of the deal, EA will be taken private, with all outstanding public shares purchased at $210 per share. This represents a 25% premium over its market value. The acquisition is valued as the second-largest gaming industry purchase ever, just behind Microsoft’s $69 billion acquisition of Activision Blizzard in 2023.
Like the Activision deal, EA’s sale raises industry questions over market competition and debt servicing. Microsoft’s purchase of Activision was only cleared after it gave cloud distribution rights for its games to Ubisoft, following regulatory concerns in the UK and elsewhere.
Buyers to Finance Through Equity and Debt
The purchasing firms will contribute around $36 billion, with the remaining amount covered through loans. Analysts estimate the deal will leave EA with approximately $20 billion in debt, sparking concerns about how this will affect its operations and future investments.
Industry expert Christopher Dring noted that while EA had been open to a potential sale, private equity involvement was unexpected. “There’s a lot of industry anxiety around this deal,” he said, adding that revenue from EA’s flagship series such as EA Sports FC, Madden, and Battlefield will be critical to servicing the debt.
Concerns have also been raised about the possibility of job cuts or reduced investment in new projects, as the private equity firms may prioritise stronger cash flow.
The Legacy of Electronic Arts in Gaming
Founded over 40 years ago, EA has been a central figure in the global gaming industry. Its football franchise, now known as EA Sports FC, has sold more than 325 million copies since its debut in 1993. Other best-selling series include The Sims (200 million copies) and Need for Speed (150 million copies).
EA has also been the publisher of several licensed titles over the years, including games based on Harry Potter and James Bond. Its current portfolio continues to generate billions annually, making it one of the most recognizable names in gaming.
EA CEO Andrew Wilson will remain in his position after the acquisition. In a statement, he said the deal represents a recognition of EA’s legacy and will enable the company to “create transformative experiences to inspire generations to come.”
Saudi Arabia Expands Gaming Investments
For Saudi Arabia, the purchase is another major step in its growing influence over the global gaming industry. The country’s Public Investment Fund has already made multi-billion-dollar investments, including the $3.5 billion acquisition of Niantic’s gaming division in March 2025, which gave it control over Pokémon Go. That deal was folded into Scopely Inc, itself acquired by Savvy Games Group, a PIF subsidiary, for $4.9 billion in 2023.
Saudi Arabia has also been active in esports, hosting global events such as the Esports World Cup and preparing to host the Olympic Esports Games in 2027. Additionally, it holds stakes in major publishers including Nintendo and Take-Two Interactive.
The scale of the EA deal highlights the kingdom’s ambition to become a global powerhouse in gaming. However, Saudi Arabia’s increasing presence in the industry has also drawn criticism due to ongoing concerns over its human rights record.
A 2019 United Nations report found that the Saudi state was responsible for the death of journalist Jamal Khashoggi, who was critical of the government. Saudi Arabia has consistently denied the allegations.
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