Key Takeaways
- • Saudi Arabia's Public Investment Fund (PIF), Jared Kushner's Affinity Partners, and Silver Lake have acquired Electronic Arts in a $55 billion all-cash transaction, marking the largest leveraged buyout in history.
- • EA shareholders will receive $210 per share in cash, representing a 25 percent premium over pre-rumor pricing and exceeding the company's all-time high stock price of $179 from mid-August.
- • The three-sponsor consortium will finance approximately $36 billion in equity, with PIF holding a 9 percent pre-existing stake in the company that contributed to the deal structure.
- • EA's 36-year tenure as a publicly traded company ends with the transaction; the company will be delisted from NASDAQ and no longer required to issue quarterly public reports, with closing expected in Q1 fiscal 2027 (spring/summer 2026).
- • The deal values the Battlefield and Madden NFL franchise developer at a significant premium, reflecting strategic interest from sovereign wealth and alternative asset managers in the global gaming and entertainment sector.
Summary
Saudi Arabia's Public Investment Fund (PIF), a $1 trillion sovereign wealth vehicle increasingly active in entertainment sector acquisitions, has led a consortium to take Electronic Arts private in a $55 billion transaction. The buyer group comprises PIF, Jared Kushner's investment firm Affinity Partners, and technology and media-focused private equity firm Silver Lake. The deal represents the largest leveraged buyout ever executed and signals accelerating capital deployment from Middle Eastern sovereign funds into gaming infrastructure.
The consortium will pay EA shareholders $210 per share in all-cash consideration, representing a substantial 25 percent premium to the stock price prior to deal rumors circulating the previous week. Notably, this price significantly exceeds Electronic Arts' all-time high closing price of $179 in mid-August 2025, reflecting aggressive valuation discipline by the buyer group. EA's shares initially surged 15 percent on preliminary rumors before gaining an additional 5 percent following formal deal confirmation on Monday, trading above $200 per share by Tuesday.
The transaction structure leverages approximately $36 billion in equity commitments from the three sponsors. PIF's involvement as an anchor investor is particularly significant given its pre-existing 9 percent equity stake in EA, which facilitated consortium formation and deal execution. The consortium's approach represents a hybrid private equity and sovereign wealth fund model, combining PIF's strategic capital, Kushner's alternative investment infrastructure, and Silver Lake's established gaming and technology investment expertise.
Closing is anticipated in Q1 of fiscal year 2027, roughly spring or summer 2026. Upon completion, EA's 36-year public market history will terminate; the company will be delisted from NASDAQ and relieved of quarterly public reporting obligations. This transition to private ownership enables operational restructuring without public market scrutiny and quarterly earnings pressures—a strategic advantage for long-duration value creation in the gaming sector. The deal underscores PIF's systematic pivot toward entertainment and gaming assets as core portfolio diversification away from traditional energy and financial services exposure.
The consortium will pay EA shareholders $210 per share in all-cash consideration, representing a substantial 25 percent premium to the stock price prior to deal rumors circulating the previous week. Notably, this price significantly exceeds Electronic Arts' all-time high closing price of $179 in mid-August 2025, reflecting aggressive valuation discipline by the buyer group. EA's shares initially surged 15 percent on preliminary rumors before gaining an additional 5 percent following formal deal confirmation on Monday, trading above $200 per share by Tuesday.
The transaction structure leverages approximately $36 billion in equity commitments from the three sponsors. PIF's involvement as an anchor investor is particularly significant given its pre-existing 9 percent equity stake in EA, which facilitated consortium formation and deal execution. The consortium's approach represents a hybrid private equity and sovereign wealth fund model, combining PIF's strategic capital, Kushner's alternative investment infrastructure, and Silver Lake's established gaming and technology investment expertise.
Closing is anticipated in Q1 of fiscal year 2027, roughly spring or summer 2026. Upon completion, EA's 36-year public market history will terminate; the company will be delisted from NASDAQ and relieved of quarterly public reporting obligations. This transition to private ownership enables operational restructuring without public market scrutiny and quarterly earnings pressures—a strategic advantage for long-duration value creation in the gaming sector. The deal underscores PIF's systematic pivot toward entertainment and gaming assets as core portfolio diversification away from traditional energy and financial services exposure.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.