EA agrees $55bn consortium buyout

December 2025 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

December 2025 Issue

Electronic Arts (EA), the video game publisher behind multimillion-dollar franchises such as Madden NFL, Battlefield and EA Sports FC, has agreed to be taken private in a leveraged buyout valued at $55bn. The consortium leading the acquisition comprises private equity firm Silver Lake, Saudi Arabia’s Public Investment Fund (PIF) and Jared Kushner’s Affinity Partners.

Under the terms of the agreement, the consortium will acquire 100 percent of EA, with PIF rolling over its existing 9.9 percent stake. EA shareholders will receive $210 per share in cash, representing a 25 percent premium to the unaffected share price of $168.32 at market close on 25 September 2025, and a premium to EA’s all-time high of $179.01 recorded on 14 August 2025. Approximately $36bn of the purchase price will be funded through equity contributions from the consortium, with the remaining $20bn financed via debt, primarily from JPMorgan Chase. The deal is expected to close in the first quarter of EA’s fiscal year 2027, pending regulatory and shareholder approval.

If completed, the transaction will mark the largest all-cash sponsor-led take-private deal in history, surpassing the previous record set by TXU’s $45bn buyout in 2007. It will also end EA’s 36-year tenure as a publicly traded company.

Andrew Wilson, EA’s long-serving chief executive, will remain in his role following the acquisition. “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,” said Mr Wilson. “I am more energized than ever about the future we are building.”

“PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators,” said Turqi Alnowaiser, deputy governor and head of international investments at PIF. “This partnership will help further drive EA’s long-term growth.”

“We are honoured to invest and partner with Andrew – an extraordinary CEO who has doubled revenue, nearly tripled EBITDA, and driven a fivefold increase in market cap during his tenure,” commented Egon Durban, co-chief executive of Silver Lake.

“Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future,” stated Jared Kushner, chief executive of Affinity Partners. “I could not be more excited about what is ahead.”

“The Board carefully evaluated this opportunity and concluded it delivers compelling value for shareholders and is in the best interests of all stakeholders,” noted Luis A. Ubiñas, lead independent director of EA’s board.

The acquisition has sparked mixed reactions. EA’s share price surged following the announcement, peaking at around $203.50 in early October. However, concerns have emerged among employees and industry observers. In an open letter, members of the United Videogame Workers union criticised the deal, warning of potential layoffs and reduced creative freedom due to the debt burden and influence of new ownership. US senators have also raised national security concerns regarding Saudi Arabia’s involvement.

Despite these concerns, Wilson has assured staff that EA’s values will remain unchanged. He emphasised the company’s commitment to diversity and inclusion, particularly in titles such as The Sims and Dragon Age, which feature LGBTQ+ representation. Nonetheless, some analysts caution that the involvement of PIF, given Saudi Arabia’s human rights record, could lead to future content restrictions or studio restructuring.

The deal positions EA to accelerate innovation and global expansion, particularly in esports and live-service gaming. It also aligns with PIF’s broader strategy to diversify Saudi Arabia’s economy through investments in technology and entertainment. PIF has previously acquired stakes in Nintendo, Take-Two Interactive and other gaming firms via its Savvy Games Group.

Upon completion, the EA buyout will become the second-largest gaming acquisition ever, following Microsoft’s $69bn purchase of Activision Blizzard in 2023.

Richard Summerfield