Electronic Arts has finalized a landmark $55 billion agreement to transition from public to private ownership, marking one of the most significant leveraged buyouts in entertainment industry history.
The transaction, which values EA at $210 per share in cash – representing a 25 percent premium over its trading price before acquisition rumors emerged-has been structured with $36 billion in equity commitments and $20 billion in debt financing arranged through JPMorgan. The consortium leading this acquisition comprises Saudi Arabia’s Public Investment Fund, private equity firm Silver Lake, and Affinity Partners, the investment vehicle led by Jared Kushner.
Electronic Arts stands as one of the industry’s most prominent publishers, having built its reputation on enduring franchises including FIFA (now EA Sports FC), The Sims, and Battlefield. The company’s transition to private ownership will conclude a 36-year tenure on public markets, with the transaction anticipated to close during the first fiscal quarter of 2027.
The Public Investment Fund, which currently maintains a 9.9 percent stake in EA as the company’s largest institutional shareholder, will convert its existing position into the new ownership structure. This acquisition represents the most substantial move in PIF’s expanding gaming portfolio, which includes minority investments in Nintendo, Capcom, and Take-Two Interactive, as well as full acquisitions of ESL, FACEIT, and Scopely through its Savvy Gaming Group subsidiary.
Andrew Wilson will continue serving as Chief Executive Officer, a position he has held since 2013. The company’s headquarters will remain in Redwood City, California, ensuring operational continuity throughout the ownership transition.
The magnitude of this transaction surpasses the previous record for leveraged buyouts, the $32 billion TXU Energy acquisition in 2007, demonstrating the substantial capital currently flowing into the gaming sector. The shift to private ownership is expected to alleviate the quarterly earnings pressures that publicly traded companies face, potentially allowing for longer-term strategic planning and creative development. However, the significant debt burden accompanying the transaction may necessitate cost optimization measures going forward.
In official statements, Kushner acknowledged EA’s track record in creating experiences with lasting cultural impact, while PIF emphasized its capacity to support EA’s expansion into global markets. Wilson characterized the buyout as validation of the company’s development teams and their influence on hundreds of millions of players worldwide.
Should the transaction proceed as planned, it will underscore gaming’s central role in Saudi Arabia’s economic diversification initiatives and represent a transformative moment for the broader video game industry.
Maybe you would like other interesting articles?