Riyadh ,KSA – September 30, 2025
Gaming Industry Shakeup Corporate Acquisition
A Corporate Acquisition of Video Game Giant Electronic Arts (EA) has sent shockwaves through the global entertainment sector, with a consortium led by the Saudi PIF securing the company in a staggering $55 Billion Deal, marking a pivotal moment for both the gaming industry and Saudi Arabia’s economic diversification strategy.
Electronic Arts (EA), the U.S. video game titan behind blockbuster franchises like Madden NFL, Battlefield, and The Sims, announced yesterday that it has entered into a definitive agreement to be acquired by an investor consortium in an all-cash transaction valued at approximately $55 billion. The deal is set to take the decades-old gaming publisher private, ending its 36-year run on the Nasdaq stock exchange.
The acquisition represents the largest all-cash sponsor take-private investment in history, underscoring the strategic value now placed on interactive entertainment on a global scale.
Headline Points on the Historic Deal
* Record-Breaking Valuation: The $55 billion deal is the largest leveraged buyout ever in the gaming sector and surpasses the previous record for a private equity buyout, the 2007 acquisition of Texas utility TXU.
* The Consortium: The investor group is comprised of Saudi Arabia’s Public Investment Fund (PIF), the major private equity firm Silver Lake Partners, and Affinity Partners, the investment firm founded and led by Jared Kushner, former White House advisor.
* Premium Share Price: Under the terms of the agreement, EA stockholders will receive $210 per share in cash. This represents a substantial 25% premium to EA’s unaffected share price of $168.32 at the market close on September 25, 2025.
* Financing Structure: The transaction is financed through approximately $36 billion in equity from the consortium members, with the PIF rolling over its existing 9.9% stake in the company. The remaining $20 billion is debt financing committed by JPMorgan Chase Bank.
* Operational Continuity: Upon completion, EA will be delisted but will remain headquartered in Redwood City, California. Andrew Wilson will also continue in his role as CEO, with the consortium citing a goal to support his team in accelerating innovation and long-term growth.
Strategic Rationale and Industry Context
The move is the most significant investment to date by the Saudi Public Investment Fund as it aggressively pursues the gaming and esports sector. The PIF, which already holds minority stakes in numerous other major gaming companies, views the acquisition of EA as a core pillar in its Vision 2030 plan to diversify the kingdom’s economy away from oil revenues. The fund stated that it “has demonstrated a strong commitment to these sectors, and this partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale.”
The decision to take EA private follows a period of intense consolidation in the video game market, notably the 2023 acquisition of rival Activision Blizzard by Microsoft for nearly $69 billion. Taking the company private will allow EA to retool its operations, pursue long-term projects, and make strategic shifts without the immediate pressure of meeting volatile public market expectations or quarterly earnings targets.
Controversy and the Road Ahead
Despite the massive financial premium offered to shareholders, the deal has immediately attracted controversy and raised questions about the long-term impact on the gaming giant’s culture and content. The involvement of the Saudi PIF, a sovereign wealth fund, has drawn scrutiny from critics over the kingdom’s human rights record, especially concerning LGBTQ+ rights, which may clash with the diverse and global community of EA’s player base and employees.
The transaction has been approved by EA’s Board of Directors, but it is still subject to customary closing conditions, including necessary regulatory approvals and the final vote of EA stockholders. The deal is currently expected to close in the first quarter of fiscal year 2027. If completed, the acquisition will fundamentally reshape the competitive landscape of the global gaming industry, introducing a massive, privately-backed competitor to the major technology firms currently vying for market dominance.
