Full Breakdown
Electronic Arts Becomes Private in $55 Billion Consortium Deal
8/5/2026, 4:15:10 PM
EA’s $55 Billion Leveraged Buyout
On August 4, 2026, Electronic Arts Inc. announced that the acquisition by a consortium of Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners had closed. The transaction, valued at $55 billion, makes EA a privately held company and ends its 37-year NASDAQ listing. Shareholders received $210 in cash per share, a 25 percent premium to the pre-announcement price of $168.32 on September 25 2025. The deal is financed with roughly $36 billion of equity and $20 billion of debt from J.P. Morgan.
Background and Context
The agreement was first announced on September 29 2025 and approved by EA stockholders on December 22 2025. PIF, a longtime minority holder, now controls about 93.4 percent of the private company. Silver Lake contributes the bulk of the remaining equity, while Affinity Partners, founded by Jared Kushner, holds a small stake.
The acquisition follows a wave of high-profile gaming deals, notably Microsoft’s $68.7 billion purchase of Activision Blizzard. Analysts have called the EA transaction the largest leveraged buyout ever recorded, surpassing previous private-equity records.
Data and Statistics
- Deal value: $55 billion (? £41 billion) – second-largest in gaming history.
- Equity contribution: $36 billion from the consortium.
- Debt financing: $20 billion, roughly three times EA’s FY 2026 GAAP net revenue of $7.5 billion.
- Share price at closing: $209.70 per share, just below the $210 buyout price.
- Ownership split: PIF 93.4 percent; Silver Lake and Affinity Partners share the remainder.
Official Statements & Responses
Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF, highlighted the fund’s familiarity with EA’s platform and its focus on entertainment and sports.
Jared Kushner, CEO of Affinity Partners, framed the acquisition as a continuation of EA’s role in creating stories and communities that reach “hundreds of millions of people.”
Criticism & Opposition
Human-rights groups, including Amnesty International, have raised concerns about PIF’s majority ownership given Saudi Arabia’s record on executions, torture, restrictions on free expression, and criminalisation of LGBTQ + activity. Critics argue this could pressure titles such as The Sims, known for inclusive representation.
Analysts note that the $20 billion debt load creates a fixed obligation that may drive cost-cutting measures, including potential studio closures. Bloomberg reported that credit-rating agencies plan to reassess EA’s rating after the deal, with expectations of a downward revision.
Private ownership also removes EA from quarterly earnings calls and SEC filings, reducing public transparency on player numbers, sales figures, and studio budgets. Observers have flagged BioWare as a studio particularly exposed to restructuring.
Verbatim Quotes
- “This moment recognizes the extraordinary people whose creativity, ambition and passion have made EA one of the world's leading interactive entertainment companies,” — Andrew Wilson, EA CEO
- “Having been a minority investor in the company for more than five years, we have a deep understanding of EA’s unique platform, massive global sports and gaming franchises, and iconic IP,” — Turqi Alnowaiser, PIF
- “EA’s franchises are some of the most beloved in entertainment, combining exceptional creative talent with a relentless focus on players,” — Egon Durban, Silver Lake
- “EA has created stories, characters, and communities that have become part of everyday life for hundreds of millions of people,” — Jared Kushner, Affinity Partners
