Electronic Arts to Go Private in $55 Billion Megadeal
An investor group led by Saudi Arabia's PIF and Silver Lake will acquire the video game giant in a landmark all-cash transaction.
Electronic Arts (EA), the powerhouse publisher behind blockbuster franchises like 'Madden NFL' and 'EA Sports FC', has entered into a definitive agreement to be taken private in a transaction valued at approximately $55 billion. The all-cash deal is being led by an investor consortium that includes Saudi Arabia's Public Investment Fund (PIF), private equity giant Silver Lake, and Affinity Partners.\n\nUnder the terms of the agreement, EA stockholders will receive $210 per share, representing a significant premium over the company's recent trading levels. The move marks one of the largest leveraged buyouts in history and signals a major consolidation wave within the global video game industry. The confirmed the deal is expected to close in mid-2026, pending regulatory approvals.\n\nThe acquisition is a cornerstone of Saudi Arabia's 'Vision 2030' strategy, which aims to diversify the kingdom's economy beyond oil. Analysts note that PIF's interest is heavily driven by EA's globally recognized portfolio of sports games, which offer consistent and predictable revenue streams. Joost van Dreunen of NYU Stern School of Business commented that for PIF, the deal would '' on par with assets like professional sports leagues or film studios.\n\nFor EA, going private offers an escape from the quarterly pressures of public markets, potentially allowing for greater long-term strategic planning. However, the deal's leveraged nature has raised concerns among some market watchers. The significant debt involved will require EA's new owners to focus heavily on cash flow to service its obligations. According to D.A. Davidson & Co. analyst Wyatt Swanson, '' precisely because its annualized titles generate such reliable revenue, a key component for a successful leveraged buyout.\n\nThis move is seen by many as a bold bet on the enduring profitability and cultural relevance of interactive entertainment. As one analyst noted, 'This is more than just a financial maneuver—it's a statement about where global capital wants to be. Gaming is no longer niche. It's central to how billions of people spend their time and money,' . The transaction is set to reshape the landscape of the video game sector, further blurring the lines between technology, entertainment, and sovereign financial interests.