How EA’s $55 Billion Buyout Could Transform Gaming Sector

Electronic Arts (EA) is the maker of Madden NFL, Battlefield, and The Sims. The company is being acquired in the largest private equity buyout in history. The deal is valued at $55 billion. It will end EA’s long run as a public company. The move is set to reshape the future of the gaming industry.

The buyer group includes Saudi Arabia’s Public Investment Fund (PIF). It also includes Silver Lake Partners, a major private equity firm. Another partner is Affinity Partners, run by Jared Kushner. Kushner is the son-in-law of former U.S. President Donald Trump.

Under the terms, EA shareholders will receive $210 per share. That price far exceeds the $32 billion leveraged buyout of Texas utility TXU in 2007, which previously held the record.

Saudi Arabia’s Expanding Gaming Footprint

The Saudi fund has been building a strong presence in gaming for years. PIF already owns a 9.9% stake in EA and is also a minority investor in Nintendo. Through its Savvy Gaming Group, PIF has acquired stakes in major companies like Scopely, FACEIT, and ESL.

Industry analysts say the EA deal is the largest and boldest move yet. According to Andrew Marok of Raymond James, “The Saudi PIF has made its intentions to scale its gaming arm clear, and the EA deal would represent the biggest such move to date by some distance.”

Gaming is a natural target for Saudi Arabia. With 63% of its population under 30, the sector appeals to a young, tech-driven audience. It also aligns with the country’s push into esports, sports, and entertainment under its Vision 2030 strategy.

EA’s History and Leadership

EA was founded in 1982 by former Apple employee William “Trip” Hawkins. The company went public in 1986, with its shares trading at just 52 cents (split-adjusted) on the first day. Over nearly four decades, it grew into one of the most recognizable names in gaming.

CEO Andrew Wilson has led EA since 2013 and will remain in his role after the buyout. The company’s headquarters will stay in Redwood City, California.

In announcing the deal, Wilson said:

“Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities.”

Jared Kushner also praised EA’s legacy, noting that he grew up playing its games and now enjoys them with his children.

Why EA Attracted Buyers

The global video game industry has drawn huge investment in recent years. In 2023, Microsoft acquired Activision Blizzard for nearly $69 billion, while Tencent and Epic Games continue to dominate in mobile and online gaming.

EA’s library of titles makes it a prime acquisition target. Franchises like Madden NFL, The Sims, Apex Legends, and EA Sports FC generate billions in annual revenue.

But EA has also faced stagnation. Its revenue has hovered between $7.4 billion and $7.6 billion over the past three years, frustrating investors. Going private gives the company space to restructure without the constant pressure of public markets.

Opportunities and Risks of Going Private

Experts say privatization could allow EA to take bigger creative risks. Freed from shareholder demands, EA may shift resources into new game development, esports, and global distribution.

Gaming analyst Joost van Dreunen explained that going private gives EA “a little bit more breathing room to do what they do.” Worcester Polytechnic Institute professor Ben Schneider added that it could even “result in more or better games.”

But fans remain cautious. EA has faced criticism for live-service models and microtransactions that keep players spending inside games. Some analysts worry the new owners will push these strategies even harder.

There are also concerns about debt financing. Reports suggest the deal will use about $20 billion in borrowed funds. Historically, such leveraged buyouts often lead to cost-cutting, layoffs, and studio closures. EA already cut 5% of its workforce in 2024 and laid off hundreds more in 2025.

Schneider warned: “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 a history of closing studios. In May 2025, it canceled a planned Black Panther video game by shutting down Cliffhanger Games. Some fear more closures could follow.

Political and Regulatory Questions

Because Saudi Arabia is part of the buyer group, the deal requires approval from the Committee on Foreign Investment in the U.S. (CFIUS). That committee, led by the Treasury Department, reviews national security risks in foreign investments.

Critics warn of conflicts of interest. Trump’s family businesses have benefited from Saudi money before, including hosting LIV Golf events at his clubs after the PGA Tour cut ties in 2021. Kushner’s direct involvement in the EA deal may invite scrutiny.

Human rights groups, including Amnesty International, have accused Saudi Arabia of sportswashing — using sports and entertainment investments to distract from its human rights record. The EA deal is already facing similar criticism.

Still, analysts expect regulators will eventually approve the transaction. Baird Equity Research noted that Saudi connections and ties to Trump’s circle may actually help EA navigate hurdles.

Analysts Split on Value

Some analysts believe EA is being undervalued. Mike Hickey of The Benchmark Company argued that with Battlefield 6 launching this October and strong growth potential, EA could generate $2 billion in extra bookings by FY28. He suggested the $210 per share price is too low.

Others disagree. Nick McKay of Freedom Capital Markets said EA’s stock already reflects much of its future success, especially in sports games and live services. He believes private ownership could give EA resources to pursue long-term growth strategies that may have been too risky for a public company.

Market Reaction and What’s Next

EA stock surged 15% after reports of the deal surfaced, then rose another 4.5% after confirmation. Investors appear optimistic, but the road ahead is complex.

If completed, the buyout is expected to close in the first quarter of fiscal 2027. Until then, EA will remain under public scrutiny, with shareholders voting on the proposal and regulators weighing approval.

The outcome will not only shape EA’s future but also set a precedent for the growing wave of video game mergers and acquisitions.

FAQs

1. Why is Electronic Arts being sold?

EA has faced stagnant revenue growth. Going private allows the company to restructure, invest in new projects, and avoid Wall Street pressure.

2. Who is buying EA?

A consortium led by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake Partners, and Affinity Partners, managed by Jared Kushner.

3. How will this affect EA games?

Privatization could bring more creative freedom, but concerns exist about cost-cutting, layoffs, and aggressive monetization.

4. What about regulation and politics?

The deal must pass the U.S. national security review. Saudi involvement and Kushner’s role raise political questions, but experts think it will likely be approved.

5. When will the deal close?

The transaction is expected to finish by the first quarter of fiscal 2027, pending shareholder and regulatory approval.

How Electronic Arts $55 Billion Privatization Could Change the Gaming Industry