In a move that is shaking up the global gaming industry, Electronic Arts (EA)—the powerhouse behind franchises like Madden NFL, Battlefield, and The Sims—has agreed to a record-setting $55 billion buyout. The deal, announced on September 30, 2025, will see EA transition from a publicly traded company to private ownership under a consortium led by Saudi Arabia’s Public Investment Fund (PIF), private equity titan Silver Lake Partners, and Affinity Partners, an investment vehicle headed by Jared Kushner, son-in-law of former U.S. President Donald Trump. If completed, this will be the largest leveraged buyout in history, eclipsing the $32 billion TXU utility acquisition from 2007, as reported by Mathrubhumi and STAR Market Daily.
The transaction is expected to close in the first quarter of fiscal year 2027. At that point, EA will be delisted from public markets, marking the end of its four-decade run as a publicly traded entity. EA CEO Andrew Wilson is set to remain at the helm, providing a sense of continuity for the company as it embarks on this new chapter.
Why such a seismic shift? According to Ars Technica, the privatization could radically alter the sources of pressure on EA, freeing the company from the relentless demands of quarterly shareholder returns. Joost van Dreunen, a games industry researcher at NYU’s Stern School of Business, explained, “By going private, EA will be able to retool operations without worrying about shareholder interest or other market scrutiny.” This could open the door to more innovative game development, with leadership able to focus on long-term strategy rather than short-term financial performance.
But there’s more to the story than just financial engineering. The involvement of Saudi Arabia’s PIF—a fund that already owns a 9.9% stake in EA and has poured billions into gaming and esports—signals the kingdom’s ambitions to diversify its economy and expand its cultural footprint. Amanda Cote of Michigan State University noted, “EA’s game portfolio simultaneously aligns with Saudi Arabia’s expansions into sports, gaming, and esports.” The kingdom’s 2022 census found that 63% of its population is under 30, making gaming a particularly attractive sector for investment and influence.
Saudi Arabia’s strategic push into digital entertainment is managed in part by Savvy Games Group, which oversees a substantial portfolio of gaming investments. Niko Partners research shows that 33% of PC gamers and 44% of console gamers in the Middle East favor sports games—a genre where EA’s franchises dominate. This alignment is no accident; it’s part of a broader effort to integrate games and esports with entertainment and sports as pillars of Saudi Arabia’s economic diversification.
However, the deal has not escaped criticism. Amnesty International and other advocacy groups accuse Saudi Arabia of “sportswashing”—using high-profile investments in sports and entertainment to distract from human rights concerns. Amanda Cote warned, “This proposed deal is likely to face similar criticism.” The political dimension is further complicated by Jared Kushner’s involvement via Affinity Partners. Analysts at Baird Equity Research suggested that “connections to both the Saudi government and the Trump administration may be a strategic asset for EA in navigating any regulatory speed-bumps.”
Regulatory scrutiny is indeed expected. Experts warn that Saudi involvement could attract attention from U.S. regulators, especially around data privacy and the potential for cultural influence over game content. Futter, an industry analyst, pointed out that altering or removing LGBTQIA+-friendly materials from socially liberal franchises like The Sims could serve as a “canary in the coal mine” for broader content interference. The risk, as some see it, is that the new ownership could prioritize cultural or political objectives over creative freedom—though most analysts believe the private investors will prefer to let professional management run the company, at least for now.
Financially, the buyout is a high-stakes gamble. The deal involves a staggering $20 billion in debt financing, raising concerns about how the company will manage its obligations while continuing to innovate. Ben Schneider, a professor at Worcester Polytechnic Institute, cautioned, “Any direct impact will come in the form of what budgets are given to those studios and, downstream, which projects get cancelled or greenlit.” EA has already laid off hundreds of employees in 2024 and shuttered studios, including one working on a Black Panther game, suggesting that cost-cutting is very much on the table.
Silver Lake, though less visible than its Middle Eastern and political partners, is a major force in global technology buyouts. Founded in 1999, the firm has a track record of large-scale deals, including investments in Alibaba, Ant Group, and Didi Chuxing. In May 2024, Silver Lake closed its largest flagship buyout fund ever, raising $20.5 billion. The firm’s shift away from minority stakes toward control investments has seen it participate in several headline-grabbing transactions, including the privatization of Endeavor Group and the acquisition of Intel’s FPGA business. Kenneth Hao, Silver Lake’s Chairman and Managing Partner, has been instrumental in steering the firm toward these mega-deals.
For the fiscal year ending March 31, 2025, EA reported net revenue of $7.463 billion—a 1.31% decrease year-over-year. Of this, $2.002 billion came from game-related business, while $5.461 billion was generated by live services and other revenue streams. The company’s aggressive monetization strategies, particularly through live-service models designed to keep players engaged (and spending), have drawn criticism from the gaming community. Some hope that the fresh capital from privatization might allow EA to “take this foot off the gas from aggressive microtransaction strategies,” as van Dreunen put it, though there’s been no indication from the new owners that such a shift is planned.
Looking ahead, the buyout could reshape EA’s global presence. Analysts suggest that some operations or events could be relocated to Riyadh, expanding the cultural reach of EA’s titles and aligning with Saudi Arabia’s vision for digital entertainment. The pressure to deliver quarterly profits may be reduced, but the demand for cultural relevance and global impact will likely rise.
Of course, leveraged buyouts are inherently risky—just ask anyone who remembers the Toys R Us collapse. The gains from such deals often accrue to the private equity firms, while the companies themselves must navigate the challenges of debt repayment and operational change. The best-case scenario, according to market watchers, is that the private owners allow EA’s management to pursue innovation and quality content without undue interference.
As the dust settles, the world will be watching to see whether EA’s bold leap into private hands will lead to creative renaissance, cultural controversy, or simply more of the same. The outcome will hinge on the delicate balance between financial goals, content strategy, and the expectations of a global audience—a high-stakes game, if there ever was one.
