In a landmark transaction set to reshape the global gaming industry, Electronic Arts (EA) is being taken private in a $55 billion leveraged buyout led by a Saudi-backed investment group, Silver Lake, and former White House adviser Jared Kushner. The deal is officially the largest take-private buyout in history, surpassing the $45 billion TXU acquisition of 2007, and marks the biggest all-cash transaction of 2025.
Deal Highlights
The agreement values EA at $210 per share, a 25% premium to its recent trading levels before takeover speculation began. The consortium includes Saudi Arabia’s Public Investment Fund (PIF), which will roll over its existing 9.9% stake in EA. The financing structure comprises $36 billion in equity commitments and a $20 billion loan facility led by JPMorgan.
Andrew Wilson, EA’s long-serving CEO, is expected to remain at the helm and continue guiding the California-based game developer as it transitions into private ownership. The acquisition is slated to close in the first half of 2027, pending regulatory approval.
Why EA?
EA boasts one of the most lucrative intellectual property portfolios in gaming, with blockbuster franchises such as:
- EA Sports FC (successor to FIFA)
- Madden NFL
- The Sims
These franchises have historically delivered steady revenues and strong brand loyalty, making EA a high-value target for investors.
The AI Bet
The buyer group is wagering heavily on the transformative role of artificial intelligence in game development and publishing. AI is already streamlining programming, automating playtesting, and generating digital assets. Analysts suggest future advancements could enable AI to create adaptive storylines, lifelike characters, and cost-efficient production pipelines, drastically lowering EA’s operational expenses.
With AI integration, the consortium believes EA’s profit margins could expand significantly, making the $55 billion price tag and large debt financing sustainable over the long term.
Market Impact
The gaming industry has seen record M&A activity in recent years, but this deal sets a new bar for scale and ambition. Industry analysts warn that such consolidation may intensify debates about creative freedom, job security for developers, and the growing influence of sovereign wealth funds in entertainment.
Still, the deal underscores the confidence investors have in gaming’s future as a leading global entertainment sector, where AI-powered innovation could transform both development and player experiences.
