Electronic Arts goes private in $55 billion buyout by a consortium led by Saudi Arabia's PIF, with Silver Lake and Jared Kushner's Affinity Partners

The deal closes

Electronic Arts, the publisher behind The Sims, Battlefield, and EA Sports FC, is now a private company. A consortium led by Saudi Arabia's Public Investment Fund, alongside Silver Lake and Jared Kushner's Affinity Partners, completed the $55 billion acquisition on Tuesday, August 4. Shareholders received $210 per share in cash, a 25% premium over the price before deal rumors surfaced. EA's stock ceased trading and will be delisted from the Nasdaq, ending a run as a public company that began with its stock-market debut in 1989. The transaction was announced on 29 September 2025 and approved by stockholders on 22 December 2025. The European Commission cleared it under EU merger rules on 23 July, with a separate decision under the foreign-subsidies regulation due by 30 July, but the last real obstacle was the US national-security review by CFIUS, prompted by PIF's status as a sovereign wealth fund and by the player data EA holds. EA told the SEC on 30 July that every required approval was in hand. PIF, which had held a 9.9% minority stake for five years, now controls 93.4% of the company. CEO Andrew Wilson remains in his role and has appointed two new presidents: Cam Weber to lead studios and David Tinson to oversee operations.

We're entering this next chapter from a position of strength with partners who share our vision and ambition. Together, we'll invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day.

Financing and debt load

The buyout is the largest leveraged buyout in history. The consortium put in an aggregate equity investment of roughly $36 billion, a figure that includes the rollover of PIF's existing 9.9% stake rather than a fresh cheque for that amount, and borrowed a further $20 billion committed solely by JPMorgan Chase, of which about $18 billion was expected to be drawn at close. That debt now sits on EA's balance sheet. One estimate suggests the company's debt load has jumped roughly tenfold. Analysts warn that servicing this debt will force painful cuts. Michael Futter of F-Squared told CNBC that he does not see how EA can manage without "significant layoffs, studio closures, and possibly IP sell-off." Bloomberg's Jason Schreier predicted more aggressive in-game monetization. The likely path, analysts say, is to lean harder on safe, established franchises and to use artificial intelligence to reduce development costs. Silver Lake's Egon Durban said the group would back "what AI can do" in game creation, echoing a broader industry push that is already eliminating jobs.

I don't know how EA is going to service this debt without significant layoffs, studio closures, and possibly IP sell-off.

New ownership and strategic direction

PIF's deputy governor Turqi Alnowaiser described entertainment and sport as "key areas of strategic focus" for the fund. He said the consortium is "uniquely positioned to be a long-term partner to EA's management team in driving sustained growth and innovation for EA and the industry." Jared Kushner, whose Affinity Partners joined the deal, said EA had "created stories, characters, and communities that have become part of everyday life for hundreds of millions of people" and that his firm was "excited to support the company as it continues to reach new audiences." The new owners have indicated that AI will play a central role in game development. EA's annual revenues have been stagnant at $7.4 billion to $7.6 billion, and the company faces intensifying competition from rivals such as Epic Games and from mobile-first publishers. Going private, Wilson argued, gives EA "long-term capital, industry expertise, and strategic support" without the pressure of quarterly earnings.

Human rights and creative control concerns

The acquisition has drawn sharp criticism from human rights groups and player advocates. Crown Prince Mohammed bin Salman, who controls PIF, has faced international condemnation over Saudi Arabia's human rights record, including a 2019 UN finding on the killing of journalist Jamal Khashoggi. Amnesty International and Human Rights Watch have accused the kingdom of using sports and esports investments to distract from its record, a practice critics call sportswashing. The campaign #BlockTheEADeal warned that "Saudi Arabia and Jared Kushner just bought access to 700 million players worldwide" and flagged risks of data misuse by a foreign sovereign. Others worry about creative interference. Franchises like The Sims have long featured inclusive content and LGBT+ relationships, while Saudi law can punish same-sex conduct severely. An advocacy group has urged fans to pressure EA to protect that creative independence.

With this deal, Saudi Arabia and Jared Kushner just bought access to 700 million players worldwide. With the increased use of AI in the creative sector and video games, the potential for data misuse by a Foreign Sovereignty is high and poses significant international security risks.

What's next for EA

EA will keep its headquarters in Redwood City, California, and Andrew Wilson at the helm. The immediate question is how the company will handle the $20 billion debt. Cost-cutting measures are widely expected, and the gaming industry is already contracting as publishers consolidate around fewer, bigger projects. The deal is the second-largest acquisition in video game history, behind only Microsoft's purchase of Activision Blizzard, announced at $68.7 billion and put at $75.4 billion when it completed in 2023. For now, EA's vast catalogue of sports titles, shooters, and life-simulation games remains intact, but the pressure to generate returns on the largest leveraged buyout ever will shape every decision from studio budgets to in-game economies.