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AsianFin -- Gaming giant Electronic Arts (EA) officially confirmed on Monday that it has agreed to be acquired in an all-cash deal by a consortium led by the Saudi Public Investment Fund (PIF), Silver Lake Capital, and Affinity Partners, the investment firm founded by Jared Kushner.
The transaction marks a landmark move in the gaming industry, with EA’s enterprise value estimated at approximately $55 billion.
Under the terms of the deal, the consortium will acquire 100% of EA’s shares, with PIF rolling over its existing 9.9% stake. Shareholders will receive $210 per share in cash, representing a 25% premium over EA’s closing price of $168.32 on September 25 and exceeding the company’s previous all-time high of $179.01 on August 14.
The acquisition is the largest all-cash sponsor-led privatization in history and one of the year’s biggest M&A transactions. Funding for the deal includes equity contributions from PIF, Silver Lake, and Affinity Partners, plus $20 billion in debt financing committed by JPMorgan Chase, of which $18 billion is expected to be available at closing. PIF’s existing shares account for around $36 billion in equity, while the three investors will fully fund the equity portion with their own capital.
EA’s Chairman and CEO Andrew Wilson praised the move as recognition of the company’s creative team and iconic IPs. “Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, opening up new opportunities. Together with our partners, we will create transformative experiences that inspire generations to come,” Wilson said. The deal has board approval and is expected to close in the first quarter of fiscal 2027, pending regulatory and shareholder approval. After completion, EA’s 36-year history as a publicly traded company will end, though Wilson will remain CEO, and headquarters will stay in Redwood City, California.
The move comes as EA faces stagnant revenue growth and an increasingly competitive gaming market, with prior reports of restructuring and layoffs. For shareholders, the $210 per share cash offer presents an attractive exit opportunity. Meanwhile, partnerships with PIF and Silver Lake are expected to provide EA with capital support, international expansion opportunities, and access to a broader business ecosystem.
Saudi Arabia’s sovereign wealth fund has been a major player in gaming and esports investments. Since acquiring roughly 10% of EA in February 2021, PIF has been actively positioning itself in the industry. It also founded Savvy Gaming Group in 2022 to advance the country’s gaming and esports ambitions under Vision 2030, aiming to expand cultural influence and attract talent and tourism. Turqi Alnowaiser, PIF Deputy Governor and Head of International Investments, emphasized that the partnership will drive EA’s long-term growth and foster global innovation in the sector.
Silver Lake Capital’s involvement reflects its interest in EA’s top-tier sports IPs, franchise rights, and scalable free cash flow. The private equity firm has been active in the market, with unconfirmed reports linking it to potential transactions involving TikTok U.S. operations.
Industry analysts note that this acquisition could trigger a wave of leveraged buyouts across major gaming companies. As large gaming firms increasingly consolidate around IP, platforms, and capital-driven strategies, EA’s privatization may mark a new phase of industry restructuring, where financial operations, cash flow predictability, and leverage capacity become central to company valuations.
