Electronic Arts (EA), one of the world’s largest video game publishers, is set to be taken private in a $55 billion deal led by a consortium that includes Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners, the investment firm founded by Jared Kushner.
The deal ranks among the largest leveraged buyouts in history and reflects a major bet on artificial intelligence reshaping the gaming industry.
One of the largest buyouts on record
The agreement, announced Monday, gives the shareholders $210 for a share. This represents a 25% premium to Thursday’s closing price in New York.
Trading in EA was halted after shares climbed about 6% in premarket activity, following a 15% jump on Friday after reports of a potential deal emerged.
At $55 billion, the transaction surpasses the $45 billion buyout of Texas utility TXU in 2007, making it the largest leveraged buyout to date and the biggest M&A deal of 2025.
Financing will include $36 billion in equity, with PIF rolling over its existing 9.9% stake, alongside a $20 billion loan package led by JPMorgan Chase.
Andrew Wilson, EA’s chief executive since 2013, will remain in place to lead the company as a private entity once the transaction closes, expected in early 2027.
Betting on AI and gaming growth
The buyer consortium is making a substantial wager that artificial intelligence can transform the economics of video game production.
AI is already being deployed across Silicon Valley to streamline tasks, and in gaming it can automate playtesting, generate assets such as backdrops, and even replace voice actors.
Longer term, industry experts believe AI could enable more responsive characters and storylines tailored to individual players.
Financial Times reported, citing sources who know the deal, that AI-driven cost savings are expected to boost EA’s profitability significantly, enabling the highly leveraged transaction to succeed despite the company’s historically modest net debt levels.
EA, based in Redwood City, California, is known for franchises such as EA Sports FC, Madden NFL, and The Sims.
The company has faced slowing growth in the $178 billion gaming sector, which boomed during pandemic lockdowns but has since cooled.
Players are increasingly drawn to free-to-play titles that update continuously, rather than traditional $70–$80 releases.
EA has also conducted rounds of layoffs while searching for new areas of growth.
Strategic and political dimensions
Kushner, who is the son-in-law of US President Donald Trump, founded Affinity Partners after leaving the White House in 2021, played a pivotal role in securing the deal.
The FT report said his involvement is expected to help ease regulatory review by the Committee on Foreign Investment in the United States (CFIUS), given the participation of Saudi Arabia’s sovereign wealth fund.
For PIF, the move represents its largest foray into interactive entertainment.
The fund already holds stakes in Nintendo and Take-Two Interactive, and in 2023 its Savvy Games Group acquired Scopely for $4.9 billion.
PIF has signaled its intention to deploy up to $70 billion annually across sectors, including technology and real estate.
Going private will free EA from the quarterly earnings cycle and investor scrutiny, allowing greater strategic flexibility.
Its sports franchises, including Madden NFL, continue to generate predictable revenues, while upcoming releases such as Battlefield 6, scheduled for October 10, are expected to further support growth.
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