Electronic Arts sold for $55 billion in historic acquisition deal

In a landmark decision, Electronic Arts (EA), a prominent video game company known for franchises such as Madden NFL and The Sims, announced on September 29, 2025, that it has entered into a definitive agreement to be acquired for $55 billion. The acquisition will be funded by a consortium comprising the Public Investment Fund of Saudi Arabia, private equity firm Silver Lake, and the Miami-based investment firm Affinity Partners, which is led by Jared Kushner. The buying group aims to pay EA shareholders $210 per share in cash, representing a substantial premium on the share price prior to acquisition news. Set to close in the first quarter of fiscal year 2027, this acquisition would mark one of the most significant transitions in the gaming industry, moving EA from being publicly traded to privately held after 36 years. The deal surpasses the previous record of $32 billion for the Texas utility TXU transaction in 2007, solidifying its place as the most expensive leveraged buyout in Wall Street history. As gaming has seen increased interest from private equity and large investors, this deal highlights changing dynamics in the industry, particularly with major titles that continue to attract large-scale investment. The acquisition comes as EA has shown strong business performance, reporting net revenues of approximately $7.5 billion in its fiscal year 2025. With its extensive portfolio that includes not just sports games but also popular titles like Battlefield and Apex Legends, the new ownership group aims to leverage EA's established brands to foster innovation and growth in the coming years. Jared Kushner, in a statement, expressed excitement about the prospects ahead, acknowledging the lasting impact EA's games have had on players, including himself and his family. While the deal is set to enhance EA's potential for future growth, there are concerns among industry analysts about its implications. Some have raised questions about the strategic timing of the acquisition, particularly given upcoming promising launches such as Battlefield 6. Others have pointed to the risks associated with talent retention within EA, fearing that key staff might depart in the event of a substantial corporate change. Additionally, potential regulatory scrutiny has been cited due to the involvement of the Saudi Public Investment Fund, raising further questions about the underlying motivations behind the acquisition and its broader implications for the gaming industry.