Ahmed Kamel – Egypt Daily News
In a landmark deal poised to reshape the global gaming industry, Electronic Arts (EA), the powerhouse behind blockbuster franchises like Madden NFL, The Sims, and Battlefield, is set to be acquired by a private investor consortium in the largest private equity-backed takeover ever recorded. The $55 billion deal will end EA’s 36-year run as a publicly traded company and signals the most aggressive move yet by Saudi Arabia’s sovereign wealth fund into the world of interactive entertainment.
The investor group includes the Saudi Public Investment Fund (PIF), private equity giant Silver Lake Partners, and Affinity Partners, a firm led by Jared Kushner, the son-in-law of former President Donald Trump. EA shareholders will receive $210 per share under the agreement.
A Historic Buyout
The $55 billion valuation dwarfs the previous record-holder for the largest leveraged buyout, TXU Energy’s $32 billion privatization in 2007 and reflects the increasing strategic value of major video game publishers in a rapidly expanding digital entertainment economy.
PIF, which already owns a 9.9% stake in EA, will roll its investment into the new structure. The fund has made gaming a centerpiece of its diversification strategy through its Savvy Gaming Group, which has invested in or acquired companies such as Scopely, FACEIT, and ESL. It is also a minority stakeholder in Nintendo.
“The EA deal would represent the biggest such move to date by some distance,” wrote analyst Andrew Marok of Raymond James, citing the PIF’s steady accumulation of assets across the global gaming sector.
A Politically Sensitive Transaction
The deal is expected to face scrutiny from the Committee on Foreign Investment in the United States (CFIUS) due to Saudi Arabia’s involvement. However, analysts expect the acquisition to move forward, particularly given the political connections of the investor group.
Kushner’s role in the transaction raises questions about potential conflicts of interest, particularly in light of his close ties to the Saudi government. Former President Trump, who has personally benefited from Saudi-backed ventures like LIV Golf tournaments held at his properties, may also be inclined to view the investment favorably. The Treasury Department, which leads the CFIUS review process, has not commented on the potential ethical implications of the deal.
EA’s Evolution and Future
Founded in 1982 by former Apple executive Trip Hawkins, EA grew from a small developer into one of the most dominant forces in interactive entertainment. It went public in 1989, and over the decades cultivated enduring fanbases around franchises like FIFA, Need for Speed, and Dragon Age. Despite a loyal customer base, the company has faced stagnant revenues over the past three fiscal years, ranging from $7.4 billion to $7.6 billion.
CEO Andrew Wilson, who has led EA since 2013, will remain in place post-acquisition. The company’s headquarters will stay in Redwood City, California.
By taking EA private, the investor group aims to free the company from quarterly earnings pressure and give it room to invest more aggressively in innovation, mobile expansion, and long-term content pipelines.
“The financial backing and resources of the investor consortium should enable EA to increase its focus on long-term growth opportunities that may have been viewed as too risky or expensive as a public company,” said Nick McKay of Freedom Capital Markets.
Silver Lake, a key player in the deal, has been active in recent high-profile tech transactions. The firm is also involved in a joint venture with Oracle regarding the U.S. oversight of TikTok, although details of that complex deal remain largely undisclosed.
Market Reaction and Analyst Skepticism
EA shares surged 4.5% on Monday, following a 15% spike on Friday amid rumors of an impending takeover. Still, not all analysts are convinced the deal reflects EA’s full value.
“With Battlefield 6 on the horizon and a content pipeline that could add more than $2 billion in incremental bookings by FY28, the true earnings power of EA is only beginning to emerge,” said Mike Hickey of The Benchmark Company.
He warned that the board may be favoring “near-term certainty and legacy over maximizing long-term shareholder value.”
Nevertheless, the all-cash offer comes at a time when many investors are cautious about tech and media equities. For some, the guaranteed payout may outweigh the speculative promise of future earnings.
Broader Industry Implications
The buyout continues a trend of massive consolidation in the video game industry. In 2023, Microsoft completed its $69 billion acquisition of Activision Blizzard, home to Call of Duty and World of Warcraft. Private capital is increasingly targeting gaming companies as reliable engines of revenue, global fan engagement, and streaming content potential.
For Saudi Arabia, the acquisition represents a significant escalation of its ambition to become a dominant global player in entertainment and media, aligning with Crown Prince Mohammed bin Salman’s Vision 2030 initiative to diversify the country’s economy away from oil.
What Comes Next
The acquisition still requires shareholder approval and clearance from U.S. regulators. If finalized as expected, the deal will close in the first quarter of fiscal 2027.
While the implications of this takeover are vast, one thing is clear: Electronic Arts is entering a new chapterone defined not by Wall Street earnings calls, but by sovereign-backed capital and strategic reinvention behind closed doors. Whether that will unleash a new era of innovation or stifle it under geopolitical and financial pressures remains a pressing question for gamers, investors, and policymakers alike.
