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Mohammedia – Electronic Arts, the maker of “Madden NFL,” “The Sims,” and “Battlefield,” is being bought in a record $55 billion deal by a consortium including Saudi Arabia’s Public Investment Fund, Silver Lake, and Jared Kushner’s Affinity Partners.
In this takeover, EA shareholders will get $210 per share, about 25% more than the price shares were trading at just before the deal became public. The transaction values the company’s equity at around $52.5 billion and adds roughly $20 billion in debt, making it the biggest leveraged buyout in history should it close.
What this means for EA and the gaming industry
EA will be taken off public stock markets, but its headquarters in Redwood City, California, will continue operations under the same CEO, Andrew Wilson. The deal is expected to complete in the first quarter of EA’s fiscal year 2027, after approval by regulators and shareholders.
For the gaming world, this is a signal that big investors are still willing to place large bets on established franchises even in times of rising costs and competition.
EA has been relying heavily on its core franchises and live services, and this buyout could free it from some of the pressures of public reporting.
Who are the key players?
- Saudi Arabia’s Public Investment Fund (PIF): PIF already owned about 9.9% of EA before this deal, and its role is not only financial but strategic. Saudi Arabia has been pushing to diversify its economy beyond oil, investing heavily in gaming, tech, entertainment, and other knowledge-based sectors. Their participation will contribute to the larger vision.
- Silver Lake: This private equity firm — known for investing in big tech, software, and entertainment — is backing this deal by adding another headline investment to its portfolio. Its experience in leveraged buyouts and tech-adjacent deals gives it an important role in shaping how the deal is structured and managed.
- Affinity Partners (Jared Kushner’s firm): Founded in 2021 and based in Miami, Affinity Partners is relatively new but has made many investments across the U.S., Middle East, and Asia. It has strong ties to Saudi capital, which makes its participation in this deal significant.
The acquisition comes as EA prepares to launch the much awaited “Battlefield 6” in an industry where players favor well-known games and spending habits are changing.
Benchmark analysts have noted that while the offer price seems attractive, it may underestimate the company’s future earnings potential, especially with the expected revenue boost from new releases by Fiscal Year 2028.
Both the company and the consortium face $1 billion fees if the deal is terminated under certain conditions, including shareholder rejection, higher competing bids, or regulatory delays past September 28, 2026. This ensures financial and operational safeguards are in place as the takeover moves forward.
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