Video game giant Electronic Arts Inc agreed to be acquired by a consortium including Saudi Arabia’s Public Investment Fund, U.S. private equity firm Silver Lake, and Affinity Partners in a landmark $55 billion all-cash deal that would be the largest leveraged buyout in history.
Under the terms of the deal announced on Monday, shareholders of the maker of “Battlefield,” “The Sims,” and the “Madden NFL” series will receive $210 per share in cash. The deal is expected to close in the first quarter of fiscal year 2027.
The acquisition marks a massive bet on the video game industry by the sovereign wealth fund of Saudi Arabia, which has been aggressively expanding its investments in global sports and entertainment. According to people familiar with the matter who spoke to CNBC, the PIF is rolling over its existing 9.9% stake and will become the majority investor in the newly private company.
The consortium is making a total equity investment of $36 billion, with an additional $20 billion in debt financing arranged by JPMorgan, which was brought into the deal in recent weeks, the people said.
The deal brings together a notable group of investors. Affinity Partners is led by its CEO, Jared Kushner, the son-in-law of U.S. President Donald Trump. In a statement, Kushner praised EA’s “bold vision for the future.”
“I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games – and now enjoys them with his kids – I couldn’t be more excited about what’s ahead,” Kushner said.
Silver Lake, led by co-CEOs Egon Durban and Greg Mondre, is also a key investor in a separate push to bring TikTok under U.S. control.
News of the potential transaction sent EA’s stock soaring late last week. Shares gained about 15% on Friday after The Wall Street Journal reported the company was nearing a deal to go private. The stock climbed another 5% on Monday.
In a note to employees, EA CEO Andrew Wilson said he is “excited to continue as CEO” under the new ownership.
“Our new partners bring deep experience across sports, gaming, and entertainment,” Wilson wrote. “They are committed with conviction to EA – they believe in our people, our leadership, and the long-term vision we are now building together.”
The people familiar with the deal told CNBC that there is a 45-day “go-shop” window allowing for other acquisition proposals, though the talks with the current consortium began in the spring.