Electronic Arts is going private in a historic $55 billion leveraged buyout backed by Saudi Arabia’s Public Investment Fund and American private equity firms. The deal, announced just weeks before the launch of Battlefield 6, represents the largest all-cash leveraged buyout in history and will reshape one of gaming’s most influential publishers.
Record-Breaking Financial Structure
The acquisition consortium commits $36 billion in equity, with Saudi Arabia’s PIF joining Silver Lake and Affinity Partners in the landmark transaction. JPMorgan Chase Bank provides $20 billion in debt financing, creating a financial structure that dwarfs previous gaming industry acquisitions. The deal surpasses Microsoft’s $68.7 billion acquisition of Activision Blizzard in cash terms, though that transaction included stock components.
EA CEO Andrew Wilson praised the transaction as “a powerful recognition” of his team’s work, confirming he will remain as chief executive following the expected Q1 2027 closing. Silver Lake co-CEO Egon Durban emphasized plans to “invest heavily to grow the business,” particularly around EA’s dominant sports franchises. The timing coincides with EA’s recent restructuring, which included hundreds of layoffs across multiple studios earlier this year.
Geopolitical Implications and Controversy
The Saudi involvement raises significant geopolitical concerns, given PIF’s leadership under Crown Prince Mohammed bin Salman. The United States intelligence community concluded the Crown Prince approved the 2018 operation that killed journalist Jamal Khashoggi. Saudi Arabia has been aggressively expanding its gaming footprint, with PIF acquiring shares in numerous gaming companies and the Crown Prince personally owning SNK Corporation.
Affinity Partners, led by Jared Kushner, brings additional political dimensions to the deal. The firm received $2 billion from Saudi Arabia’s PIF shortly after Kushner left government service. This transaction occurs amid ongoing scrutiny of Saudi Arabia’s human rights record and its efforts to diversify beyond oil through Vision 2030 initiatives, which explicitly target gaming and entertainment investments.
Strategic Impact on Gaming Industry
The acquisition fundamentally alters EA’s operating structure as it prepares to launch Battlefield 6 on October 10. Four studios have spent years developing the flagship shooter, which now becomes a critical test of the new ownership’s strategy. EA’s sports franchises, including Madden NFL and EA Sports FC, generate consistent annual revenue exceeding $7 billion, making them central to the investment thesis.
Recent studio closures and project cancellations suggest strategic refocusing began before the acquisition announcement. EA shuttered Cliffhanger Games and canceled its Black Panther project in May, following April layoffs that affected Respawn Entertainment and killed a Titanfall incubation. Despite these cuts, development continues on major titles including the next Star Wars Jedi game and Bit Reactor’s turn-based tactics title Star Wars Zero Company, scheduled for 2026.
Future Outlook and Industry Response
Industry analysts question how the privatization will affect EA’s creative direction and workforce stability. The International Game Developers Association has expressed concern about consolidation trends and job security amid major acquisitions. Private ownership typically allows longer development cycles away from quarterly earnings pressure, but also reduces transparency about studio performance and working conditions.
The deal’s completion in 2027 provides substantial regulatory review time, particularly given Saudi Arabia’s growing influence in American technology and entertainment. The SEC filing indicates standard regulatory approvals are required, though national security concerns could emerge given the sensitive nature of gaming technology and data. The transaction’s success will ultimately depend on whether private ownership can accelerate innovation while navigating complex international relationships.
