Electronic Arts to Go Private in Record $55B Buyout Deal
Saudi Arabia's PIF, Silver Lake, and Affinity Partners lead the leveraged buyout, offering a 25% premium to shareholders.
In the largest leveraged buyout on record, Electronic Arts Inc. (EA) has agreed to be taken private by a consortium of investors for $55 billion. The group, which includes Saudi Arabia's Public Investment Fund (PIF), private equity firm Silver Lake Management, and Affinity Partners, will pay shareholders $210 per share in cash.
The over EA's unaffected share price of $168.32 at market close on September 25, 2025. The transaction is structured with approximately $36 billion in cash contributions from the consortium and $20 billion in debt financing arranged by J.P. Morgan. The PIF will also roll over its existing 9.9% stake in the video game giant.
For Electronic Arts, the move to go private offers an escape from the quarterly pressures of Wall Street, allowing for more flexibility in long-term strategic planning. CEO Andrew Wilson, who will continue in his role, said the deal will “unlock new opportunities to push the boundaries of entertainment.” The company's valuable intellectual property, including blockbuster franchises like Madden NFL, The Sims, and Battlefield, makes it an attractive asset.
The acquisition is a major strategic move for the investors. For Saudi Arabia's PIF, it aligns with the kingdom's beyond oil by investing in high-growth sectors like entertainment and technology. Silver Lake brings its extensive experience in technology buyouts to the table.
Despite the optimistic outlook, the deal is not without risks. The significant debt load could become a challenge if the gaming market slows or if new game releases underperform. The transaction is expected to close in the first quarter of fiscal year 2027, pending regulatory and shareholder approvals, .