Electronic Arts (EA), the publisher behind hit franchises like FIFA (now EA Sports FC), Battlefield, NFS Racing Game and Madden NFL, has announced a landmark agreement to be acquired for $55 billion in what will be the largest leveraged buyout in history. The deal will see 100 % of EA go private under a consortium led by Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners.
Under the terms, EA shareholders will receive $210 per share in cash, a 25% premium over the company’s share price of $168.32 prior to reports of the acquisition. This price also exceeds EA’s all-time high of $179.01, marking what the company’s board described as “compelling value” for stockholders.
A Historic LBO
The $55 billion transaction eclipses the previous record for leveraged buyouts, including the $45 billion takeover of TXU Energy in 2007. It will be financed through $36 billion in cash, equity already held by PIF (9.9% stake), and $20 billion in debt financed by JPMorgan.
EA’s sports portfolio—anchored by FIFA (now EA Sports FC) and Madden NFL—remains a reliable revenue driver due to global popularity and strong in-game spending, while the upcoming release of Battlefield 6 is expected to boost engagement.
A $1 Billion Termination Fee
To reinforce the commitment, the agreement includes a $1 billion termination fee. EA would be required to pay this penalty if its board reverses course, accepts a higher competing offer, or pursues another deal within a year of shareholder rejection. Similarly, the investor consortium would owe the same amount if regulatory delays extend past September 2026 or if it fails to meet contractual obligations.
The World Cup, Saudi Arabia and EA
Saudi Arabia’s acquisition of EA, the publisher behind EA Sports FC, also dovetails with the kingdom’s plans to host the FIFA World Cup in 2034. By owning the studio that develops the world’s most popular football video game, Saudi Arabia strengthens its global sports footprint and gains a powerful cultural asset to complement its on-the-ground investments in football clubs, stadiums, and tournaments.
On the other hand, Saudi Arabia’s purchase of EA, a maker of globally popular sports titles, could be viewed as another instance of “sportswashing,” where investments in high-profile sports and games are used to soften the kingdom’s global image after numerous human rights violations.
For PIF, the acquisition aligns with Saudi Arabia’s broader economic diversification plan, which includes heavy investments in gaming, esports, and sports. Turqi Alnowaiser, Deputy Governor of PIF, emphasized the deal’s role in “fueling innovation within the industry on a global scale.”
Silver Lake and Affinity Partners highlighted EA’s established franchises, strong free cash flow, and growth opportunities in blending digital and physical fan experiences. Kushner, who leads Affinity Partners and is also President Trump’s Son-in-law, described the deal as both a personal and professional milestone, citing his own history with EA’s games.
What’s Next
The acquisition, approved by EA’s board, is expected to close in the first quarter of fiscal 2027, subject to regulatory and shareholder approval. EA will remain headquartered in Redwood City, California, with CEO Andrew Wilson continuing to lead the company. Once completed, EA will be delisted from public markets, marking the end of its four-decade run as a publicly traded gaming giant.
If successful, the deal could reshape the gaming industry and signal a new era of private ownership for leading publishers.
