Electronic Arts is going private in a $55 billion all-cash deal with Saudi Arabia’s Public Investment Fund, Silver Lake and Jared Kushner’s Affinity Partners.
Under the terms of the agreement, the investor consortium will acquire 100% of the company, with PIF rolling over its 9.9% stake. EA stockholders will receive $210 per share in cash — a 25% premium to its unaffected share price of $168.32 at market close on Sept. 25. It’s also a premium to its all-time high of $179.01 at market close on Aug. 14.
The transaction will be funded by a combination of cash from PIF, Silver Lake and Affinity Partners, as well as the rollover of PIF’s stake — constituting an equity investment of approximately $36 billion. PIF, Silver Lake and Affinity Partners plan to fund the equity component of the financing entirely from capital under their respective control. It will also include $20 billion in debt financing from J.P. Morgan Chase, with $18 billion that will be funded at close.
“The Board carefully evaluated this opportunity and concluded it delivers compelling value for stockholders and is in the best interests of all stakeholders,” Luis A. Ubiñas, lead independent director of EA’s board, said in a statement. “We are pleased that this transaction delivers immediate and certain cash value to our stockholders while strengthening EA’s ability to continue building the communities and experiences that define the future of entertainment.”
The deal, which is larger than the $50 billion first reported by the Wall Street Journal last week, is expected to close in the first quarter of fiscal 2027, subject to required regulatory and shareholder approvals. If approved, it would be the largest leveraged buyout in history.
Upon completion, EA will remain headquartered in Redwood City, California, and continue to be led by Andrew Wilson as CEO.
“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP and created significant value for our business. This moment is a powerful recognition of their remarkable work,” Wilson said in a statement. “Looking ahead, we will continue to push the boundaries of entertainment, sports and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.”
Shares of EA jumped nearly 5% on Monday’s announcement, with the stock briefly touching a 52-week high of $203.75 per share. Its market capitalization sits at $50.89 billion.
The video game publisher, which reported net revenue of approximately $7.5 billion in its 2025 fiscal year, is known for franchises including “The Sims,” “Battlefield,” “Madden” and “EA Sports.” Its next release will be “Battlefield 6” on Oct. 10.
“Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future,” Kushner said. “I’ve admired their ability to create iconic, lasting experiences and as someone who grew up playing their games – and now enjoys them with his kids — I couldn’t be more excited about what’s ahead.”
“PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers and IP creators,” PIF deputy governor and head of international investments Turqi Alnowaiser added. “PIF has demonstrated a strong commitment to these sectors, and this partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale.”
“This investment embodies Silver Lake’s mission to partner with exceptional management teams at the highest quality companies. EA is a special company: a global leader in interactive entertainment, anchored by its premier sports franchise, with accelerating revenue growth and strong and scaling free cash flow,” Silver Lake managing partner and co-CEO Egon Durban said. “The future for EA is bright, we are going to invest heavily to grow the business and we are excited to support Andrew and the EA team as the company accelerates innovation, expands its reach worldwide and continues to deliver incredible experiences to players and fans across generations.”
EA shares are up 16.9% in the past five days, 18% in the past month, 40.4% in the past six months, 39% year to date, 41% in the past year and 57% in the past five years.
