EA Acquired in Record $55 Billion Deal Backed by Saudi Fund and Silver Lake

Electronic Arts (EA), the popular video game publisher behind “Madden NFL,” “Battlefield,” and “The Sims,” is set to be acquired in a historic deal worth $55 billion. The transaction will mark the largest private equity-funded buyout ever, surpassing the $32 billion takeover of TXU Energy in 2007.

The investor group includes Saudi Arabia’s Public Investment Fund (PIF), private equity giant Silver Lake Partners, and Affinity Partners, a firm led by Jared Kushner, son-in-law of former U.S. President Donald Trump.

A $210 Per Share Offer for EA Stockholders

Under the deal, EA stockholders will receive $210 per share, offering a strong premium over the company’s recent trading price. If approved, this move will bring an end to EA’s 36-year run as a publicly traded company. The company’s shares first debuted in 1989 at just $0.52 (split-adjusted), making this buyout a significant milestone in its history.

Saudi Arabia’s Expanding Gaming Ambitions

The buyout reflects Saudi Arabia’s growing interest in the global gaming industry. The country’s sovereign wealth fund, PIF, has already invested in major publishers and gaming platforms. Through its Savvy Gaming Group, PIF has acquired stakes in companies like Nintendo, ESL, FACEIT, and Scopely.

Analysts believe the EA deal represents the largest and boldest step in Saudi Arabia’s strategy to become a major global gaming hub. Andrew Marok of Raymond James noted, “The Saudi PIF has been very active in gaming since 2022, and the EA deal would be the biggest move by far.”

What Happens Next? Regulatory Approval

Because the deal involves foreign investors, especially Saudi Arabia’s PIF, the buyout will require clearance from the Committee on Foreign Investment in the United States (CFIUS). The Treasury Department has not yet commented, but analysts expect approval is likely.

Political connections may also influence the process. Trump’s family business has benefited from Saudi investments in the past, such as hosting LIV Golf tournaments at Trump-owned clubs. Observers suggest this relationship could make the U.S. government more favorable toward the deal.

EA’s Legacy as a Gaming Pioneer

Founded in 1982 by former Apple employee William “Trip” Hawkins, EA has grown into one of the world’s biggest game publishers. Its sports titles, including FIFA, Madden NFL, and NBA Live, became household names, while franchises like The Sims and Battlefield shaped gaming culture for decades.

Since 2013, CEO Andrew Wilson has led the company. He will remain in his role after the buyout, and EA’s headquarters will continue to operate from Redwood City, California.

Jared Kushner expressed excitement about the future of EA, saying: “I’ve admired EA’s ability to create lasting experiences. As someone who grew up playing their games and now enjoys them with my kids, I couldn’t be more excited about what’s ahead.”

Why Go Private?

One of the main reasons for the buyout is EA’s stagnant revenue growth. Over the past three years, the company’s annual revenues have hovered between $7.4 billion and $7.6 billion.

By going private, EA can focus on long-term innovation without the constant pressure of quarterly results and stock market expectations. Analysts believe this move will give the company more freedom to experiment with new game development, cloud gaming, and live-service models.

Mixed Reactions from Analysts

The $210 per share offer has received mixed reactions from financial experts.

Mike Hickey of The Benchmark Company argued that the offer undervalues EA, noting that upcoming releases like Battlefield 6 and new live-service games could boost earnings by over $2 billion by 2028. He said, “The board’s decision shows a preference for near-term certainty over maximizing long-term shareholder value.”

Nick McKay of Freedom Capital Markets disagreed, saying the deal makes sense. He explained that EA’s stock has already priced in much of its potential from sports franchises and live services. With new financial backing, EA could take on larger risks and explore fresh opportunities.

A Growing Trend of Gaming Industry Takeovers

The video game industry has been attracting large-scale investments in recent years:

• In 2023, Microsoft bought Activision Blizzard for nearly $69 billion, one of the biggest acquisitions in tech history.
• Private equity firms have increasingly shown interest in gaming companies because of their loyal fan bases and steady revenue streams.
• EA’s deal with PIF and Silver Lake marks another example of how gaming is now viewed as a strategic global asset.

What It Means for Gamers

For everyday players, the buyout may not change much in the short term. EA’s most popular titles like FIFA, Madden, Apex Legends, and The Sims will continue. However, with stronger financial backing, EA could:

• Expand into new genres and platforms
• Strengthen its eSports and mobile presence
• Invest more in virtual reality and cloud gaming
• Take creative risks that were harder as a public company

The transaction is expected to close in the first quarter of fiscal 2027, pending shareholder approval and regulatory review. If successful, it will reshape not only EA’s future but also the broader gaming landscape.

For now, EA remains a gaming powerhouse with a loyal fan base and a new chapter ahead. The question is whether this historic $55 billion buyout will unlock the company’s full potential—or simply mark the end of an era for one of gaming’s most iconic publishers.

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