 | |
| Initiator | Public Investment Fund,Silver Lake,Affinity Partners |
|---|---|
| Target | Electronic Arts |
| Type | Leveraged buyout |
| Cost | US$55 billion |
| Initiated | September 29, 2025 |
On September 29, 2025, a consortium of investors comprising thePublic Investment Fund ofSaudi Arabia, the private equity firmSilver Lake, and the investment firmAffinity Partners announced aleveraged buyout of the American video game companyElectronic Arts.
Electronic Arts is an American video game company founded in the 1982 byTrip Hawkins, a formerApple employee. The company initially received financial support from venture capital firms, includingKleiner Perkins andSequoia Capital. Prior to the announcement of the leveraged buyout, Electronic Arts's financial results were largely dependent on the profits from its most successful franchises,EA Sports FC (1994–present) andMadden NFL (1988–present), and the expected release ofBattlefield 6 (2025). In early 2025, the company revised its financial forecast downward due to declining demand for soccer-themed video games.[1] Electronic Arts reported first-quarter financial results that slightly exceeded expectations but projected lower-than-expected net profits, citing uncertain demand and a weakening economic outlook.[2]
Aleveraged buyout is a type of acquisition in which the buyer uses a significant amount of borrowed money, often combined with private equity, to purchase a company.[1] The goal is typically to improve the company’s performance and later sell it at a profit.[3] The market for large leveraged buyouts significantly weakened after the2008 financial crisis;[1] thestock market crash following U.S. presidentDonald Trump's announcement ofglobal tariffs in 2025 complicated attempted acquisitions and corporate deals, although surging stock prices and optimism about approval of deals by federal regulators, have led investors to reconsider large transactions.[3]
A group of investors interested in acquiring Electronic Arts included thePublic Investment Fund of Saudi Arabia (PIF), private equity firmSilver Lake, and investment firmAffinity Partners. At the time, PIF already held a 10% stake in Electronic Arts and had additional investments in the video game industry, including shares in Take-Two Interactive and ownership ofSavvy Games Group.[1] Affinity Partners was founded by the businessmanJared Kushner, who is Trump's son-in-law; the company's investors include PIF, a relationship that drew criticism from Kushner's prior role in seekingArab–Israeli normalization in Trump'sfirst term.[3]
The buyout is subject to customary regulatory approvals and is expected to be completed in the first quarter of Electronic Arts’ fiscal year 2027, which would be around June 2026. As of January 2026, the transaction was reported to be in its final stages.[4][5][6][7]
Silver Lake executive Egon Durban began exploring a possible acquisition of Electronic Arts in 2011. In August 2025, Jared Kushner approached Durban about a deal. That month, they finalized an offer and presented it to Electronic Arts. According to the Financial Times, Kushner used his ties to Saudi Arabia to gain the backing of Crown PrinceMohammed bin Salman and later secured support from JPMorgan Chase CEO Jamie Dimon.[8] TheWall Street Journal reported that discussions about a leveraged buyout had been ongoing for several months, but intensified in September. On September 17, JPMorgan Chase agreed to provide debt financing for the deal.[8][9]
On September 26, 2025, a consortium comprising PIF, Silver Lake, and Affinity Partners announced plans to acquire Electronic Arts for approximately US$50 billion in a leveraged buyout. If completed, it would mark the largest leveraged buyout in history.[1] JPMorgan Chase was in discussions to arrange more than US$20 billion in debt financing for the transaction.[10]
On September 29, 2025, Electronic Arts agreed to a US$50 billion leveraged buyout.[9] As part of the proposal, PIF would provide most of the US$36 billion equity, with additional funding from Silver Lake and Affinity Partners. Shareholders would receive US$210 per share, amounting to a 25% premium.[9] The deal became the largest leveraged buyout to date and the second-largest gaming acquisition after Microsoft’spurchase of Activision Blizzard. It was approved by the board and shareholders, with closure expected by June 2026.[11][12][13][14]
The transaction increased Electronic Arts’ debt from US$2.2 billion to US$20 billion.[15] The agreement included reciprocal US$1 billion termination fees if either Electronic Arts or the consortium withdrew, breached the deal, or faced regulatory delays beyond one year.[16] If the deal goes through, PIF would become the majority owner of Electronic Arts, with Silver Lake holding a significant minority stake and Affinity Partners owning five percent.[8]
The leveraged buyout would need the U.S. federal government approval by theCommittee on Foreign Investment in the United States.[17] According to several individuals who spoke to theFinancial Times, the deal is expected to pass "easily", given Kushner's relationship with his father-in-lawDonald Trump and Mohammed.[8]
According toReuters, a successful acquisition would "mark further consolidation within the industry" amid other publicly-traded video game companies going private, includingActivision Blizzard andZynga,[18] and would focus attention on leveraging intellectual property by diversification.[19]
The proposal drew criticism from some content creators ofThe Sims, who expressed concerns that the franchise's emphasis on inclusivity could be affected, citing theSaudi government’s record on LGBTQ rights andconservative positions on LGBTQ issues within the Republican Party. Several content creators forThe Sims 4 (2014), includingKayla Sims, James Turner, and Jesse McNamara, subsequently left EA's creator program.[20] In a statement published in January 2026, the game's developerMaxis stated that the game's values and creative control would remain "unchanged", and that its focus on inclusivity would not be affected by the proposed buyout.[21][22]
FollowingThe Wall Street Journal's report announcing a deal was nearing finalization, Electronic Arts's stock price increased fifteen percent, taking the company from a market capitalization ofUS$43 billion toUS$48 billion.[1] According toThe New York Times, a deal to take Electronic Arts private would allow the company's investors to take some of the titles and franchises in its portfolio and convert them into mobile games without the potential expense of having to report to investors in the public markets.[3] Reuters additionally estimated that the deal could "herald a comeback of massive leveraged buyouts".[16]
According to analysts with the venture capital firmBenchmark, the leveraged buyout offer was lower than Electronic Arts's "intrinsic value", noting the expected release ofBattlefield 6 (2025) and a possible profit increase ofUS$2 billion by 2028.[16] TheUS$20 billion in debt Electronic Arts is expected to mount may force layoffs, lower budgets, and less risk-taking, according toThe Verge.[23]United Videogame Workers-CWA, a union that includes Electronic Arts workers, criticized potential layoffs for expending employees in favor of attempting to "pad investor pockets".[24]
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The leveraged buyout is an attempt bySaudi Arabia to develop its entertainment sector, a key component of the country'sSaudi Vision 2030 strategic plan.[25] According to analysts who spoke to Reuters, PIF's interest in Electronic Arts involves the company's sports portfolio, includingEA Sports FC.[18] According toThe New York Times, it additionally extends theHouse of Saud's connection to U.S. presidentDonald Trump throughJared Kushner.[26]
In October 2025,Democratic senatorsRichard Blumenthal ofConnecticut andElizabeth Warren ofMassachusetts sent a letter to secretary of the treasuryScott Bessent and EA CEOAndrew Wilson, expressing concerns that the buyout would be used for foreign influence by using consumer data from Electronic Arts.[27]
