In a move that’s set to shake up the global gaming industry, Electronic Arts Inc. (EA)—the powerhouse behind franchises like Madden NFL, Battlefield, and The Sims—has agreed to a $55 billion all-cash buyout by an investor consortium comprising Saudi Arabia’s sovereign wealth fund (PIF), Silver Lake Partners, and Affinity Partners, the latter run by Jared Kushner. If finalized, this would not only be the largest take-private deal in history, but also a defining moment for the world of interactive entertainment, marking a new era of consolidation and private capital dominance.
Announced on September 30, 2025, the deal values EA at approximately $55 billion, or about $210 per share—a 25% premium over the company’s pre-announcement stock price, according to Keystone-SDA. The news sent EA’s shares soaring by 15% after initial reports broke, reflecting investor excitement and the sheer scale of the transaction. The consortium’s offer far exceeds the previous record for leveraged buyouts, eclipsing the $32 billion deal for Texas utility TXU in 2007, as reported by AP.
For EA, the decision to go private is less a lifeline and more a strategic leap. As Roman Safiyulin of GDEV told Mobidictum, "EA is seeking to go private by raising $55 billion to gain strategic freedom and access to long-term capital. As a private company, EA would be able to pursue bold goals—such as growing its audience to over 1 billion players and expanding its AI and live-service capabilities—without the pressure of quarterly earnings reports." This sentiment was echoed by EA’s CEO Andrew Wilson, who assured stakeholders, "Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities." Wilson is set to remain at the helm if the deal goes through.
But why now? The gaming industry is in flux. After a pandemic-driven boom, the sector has faced headwinds—declining revenues, increasing competition from free-to-play giants like Roblox and Fortnite, and ballooning development costs that can rival Hollywood blockbusters. EA itself has undergone several rounds of layoffs, cutting about 5% of its workforce in 2024 and several hundred more in May 2025. The company also shuttered studios, including the closure of Cliffhanger Games and the cancellation of a Black Panther project earlier this year. According to AP, the deal involves $20 billion in debt financing, raising concerns about further cost-cutting and its impact on the creative teams that actually make the games.
Still, the move is not a response to crisis. EA remains profitable and was valued at nearly $48 billion before the deal. Instead, the buyout is a proactive step to secure long-term growth, accelerate innovation, and shield the company from the short-term pressures of public markets. "It’s extremely rare. If completed, this $55 billion buyout would become the largest take-private deal in history, highlighting its uniqueness. EA is not in distress—the company is profitable and currently valued at nearly $48 billion. This is a strategic move, not a rescue mission," Safiyulin explained to Mobidictum.
The acquisition is also a sign of the times for the gaming world. Industry consolidation is picking up speed, with fewer truly independent publishers and more influence from platform owners, private equity giants, and sovereign wealth funds. Microsoft’s $69 billion acquisition of Activision Blizzard in 2023 set the stage for mega-deals, and now EA’s privatization could force rivals like Ubisoft and Take-Two to rethink their strategies or seek new partners. As Safiyulin observed, "If completed, this deal would represent a major turning point for the gaming industry. It would accelerate ongoing consolidation, leaving fewer truly independent publishers and shifting power toward platform owners, private equity–backed giants, and sovereign wealth funds."
For Saudi Arabia, the deal is part of a broader push to diversify its economy and build a global presence in sports, entertainment, and technology. The PIF already held a 9.9% stake in EA and has been expanding its gaming portfolio, including investments in the developer behind Pokemon Go and competitive gaming platforms like ESL FACEIT. Amanda Cote of Michigan State University told AP, "EA’s game portfolio simultaneously aligns with Saudi Arabia’s expansions into sports, gaming, and esports." PIF’s growing presence in gaming is also driven by the country’s youthful demographic—63% of Saudis are under 30, according to the 2022 census—making gaming a natural fit for both domestic demand and international influence.
However, not everyone is cheering. Human rights groups, such as Amnesty International, have criticized Saudi investments in sports and esports, accusing the nation of "sportswashing"—using high-profile deals to distract from its human rights record. Cote noted, "This proposed deal is likely to face similar criticism." There are also concerns about how the new ownership might influence EA’s creative direction, especially as gamers have often been wary of corporate interference. Ben Schneider, a professor at Worcester Polytechnic Institute, remarked to AP, "Gamers are generally not enthralled with corporate owners influencing how game makers make their games, to say the least."
The buyout might also give EA "more breathing room to do what they do," as Joost van Dreunen of Aldora told AP, potentially allowing the company to ease off aggressive microtransaction strategies that have drawn player ire in recent years. But experts caution that the impact of private ownership on game quality and studio budgets remains to be seen. As Schneider put it, "Any direct impact will come in the form of what budgets are given to those studios and, downstream, which projects get cancelled or greenlit."
The deal’s timing has raised eyebrows, too. TD Cowen analysts Doug Creutz and Mei Lun Quach questioned why EA would agree to be acquired just before the highly anticipated launch of Battlefield 6 on October 10, 2025. The game received strong feedback during testing, and some industry watchers argue that the acquisition price undervalues EA’s future potential. Yet, Nick McKay of Freedom Capital Markets thinks the price is fair, given that the success of EA’s sports franchises is already factored into the valuation.
The transaction is expected to close by the first quarter of 2027, pending shareholder and regulatory approval. While U.S. regulators may not pose a significant hurdle, global consumer watchdogs could scrutinize the deal, especially given the high-profile involvement of both the Saudi government and Kushner’s Affinity Partners. As Baird Equity Research analysts noted, "connections to both the Saudi government and the Trump administration may be a strategic asset for EA in navigating any regulatory speed-bumps."
As the dust settles, one thing is clear: the gaming landscape is changing fast. With Electronic Arts poised to leave the stock market and enter a new era under private ownership, the industry—and its millions of players—will be watching closely to see if this bold bet pays off.
