Key Takeaways
- • Saudi Arabia's Public Investment Fund is leading a historic $55 billion leveraged buyout of Electronic Arts alongside Silver Lake Partners and Jared Kushner's Affinity Partners, with PIF acquiring approximately 93.4% ownership and Silver Lake 5.5%.
- • The transaction is structured as $36 billion in cash combined with PIF's existing equity holdings, supplemented by approximately $20 billion in debt financing from JPMorgan, representing the largest all-cash sponsor take-private investment in history.
- • Electronic Arts will be delisted from all stock exchanges, with shareholders receiving $210 per share—a 25% premium—at a transaction valuation of $55 billion, making this the largest leveraged buyout ever recorded.
- • The acquisition expands Saudi Arabia's strategic footprint in the gaming and esports sectors as part of its broader economic diversification initiative away from oil dependence, building on the kingdom's hosting of the Esports World Cup in Riyadh.
- • EA's portfolio includes flagship franchises generating substantial revenue: EA FC (325 million copies sold since 1993), Battlefield, Madden NFL, and Apex Legends, positioning the private entity to pursue accelerated innovation and global expansion without public market constraints.
Summary
Saudi Arabia's Public Investment Fund has spearheaded an unprecedented $55 billion acquisition of Electronic Arts in partnership with private equity firm Silver Lake Partners and Affinity Partners, a vehicle controlled by Jared Kushner. The consortium completed the acquisition on September 29, 2025, after shareholders approved the transaction at $210 per share—representing a 25% premium to prior trading levels. This deal constitutes the largest all-cash sponsor take-private investment in history and the largest leveraged buyout on record.
The financing structure reflects a balanced capital deployment: approximately $36 billion in cash contributions from the consortium partners, combined with PIF's existing equity stake in EA, plus approximately $20 billion in debt financing arranged through JPMorgan. Upon closing, PIF will hold 93.4% of the company with Silver Lake Partners controlling 5.5%, while EA transitions from a publicly traded entity to a privately held concern delisted from all stock exchanges.
Electronic Arts, founded in Redwood City, California in 1991, generates significant revenue from a portfolio of globally recognized gaming franchises. EA FC, the company's sports simulation title, has sold 325 million copies since its 1993 launch. The company also operates leading franchises including Battlefield, Madden NFL, and Apex Legends, which collectively represent substantial revenue streams across console, PC, and mobile platforms developed over three decades of operations.
The acquisition aligns with Saudi Arabia's stated economic diversification strategy, reducing reliance on oil revenues while establishing a dominant position in the high-growth gaming and esports sectors. The kingdom's prior investments in esports infrastructure, including hosting the Esports World Cup in Riyadh, provide strategic context for this substantial capital deployment. EA's statement regarding the transaction emphasized that the private structure will "enable the company to move faster and unlock new opportunities on a global stage," suggesting management anticipates operational flexibility and investment acceleration under consortium ownership.
The financing structure reflects a balanced capital deployment: approximately $36 billion in cash contributions from the consortium partners, combined with PIF's existing equity stake in EA, plus approximately $20 billion in debt financing arranged through JPMorgan. Upon closing, PIF will hold 93.4% of the company with Silver Lake Partners controlling 5.5%, while EA transitions from a publicly traded entity to a privately held concern delisted from all stock exchanges.
Electronic Arts, founded in Redwood City, California in 1991, generates significant revenue from a portfolio of globally recognized gaming franchises. EA FC, the company's sports simulation title, has sold 325 million copies since its 1993 launch. The company also operates leading franchises including Battlefield, Madden NFL, and Apex Legends, which collectively represent substantial revenue streams across console, PC, and mobile platforms developed over three decades of operations.
The acquisition aligns with Saudi Arabia's stated economic diversification strategy, reducing reliance on oil revenues while establishing a dominant position in the high-growth gaming and esports sectors. The kingdom's prior investments in esports infrastructure, including hosting the Esports World Cup in Riyadh, provide strategic context for this substantial capital deployment. EA's statement regarding the transaction emphasized that the private structure will "enable the company to move faster and unlock new opportunities on a global stage," suggesting management anticipates operational flexibility and investment acceleration under consortium ownership.
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