EA Agrees To $55 Billion Sale In Largest Leveraged Buyout On Record

Electronic Arts Inc. agreed to sell itself to Saudi Arabia's sovereign wealth fund and a pair of private equity firms in a deal that values the company at about $55 billion, marking the largest leveraged buyout on record.

Saudi Arabia's Public Investment Fund, along with Silver Lake Management and Jared Kushner's Affinity Partners, agreed to pay $210 per share in cash, a 25% premium to where EA traded before the talks leaked on Friday. JPMorgan Chase & Co. is providing $20 billion of debt, the largest debt commitment for a buyout ever.

The record-shattering going-private sale is the latest sign that the deal boom expected under the administration of President Donald Trump is starting to take hold, as it cemented the most active quarter for mergers in more than three years. It also shows the pivotal role that sovereign wealth from the Middle East is increasingly playing in the biggest deals.

Electronic Arts, the maker of EA Sports FC and The Sims, is selling amid sluggish growth for the $178 billion video game industry, after sales swelled during the pandemic lockdowns. The company, which has experienced numerous rounds of layoffs, has been seeking new areas of growth to inspire players who have gravitated toward free-to-play franchises that are continually updated rather than splash out for new titles that can cost $80.

The transaction will be funded with cash from the consortium partners, and Saudi Arabia's PIF will roll over its existing 9.9% stake in the company, constituting an equity investment of about $36 billion. The deal comes with a termination fee of $1 billion should it fall apart, according to a company filing.

The pact displaces the roughly $45 billion leveraged purchase of power company TXU in 2007 as the largest buyout on record. It's also one of the largest M&A deal of 2025 and shows Wall Street's appetite for game-changing mergers despite recession fears and geopolitical concerns impacting the broader economy.

Electronic Arts shares rose 4.8% Monday morning in New York to $202.73, off 3.5% from the offer price. Gaming companies including Take-Two Interactive Software Inc. and Roblox Corp. also gained.

Founded in 1982, Electronic Arts is one of the world's largest independent video-game publishers after a wave of industry consolidation of the past few years. Activision Blizzard, maker of the Call of Duty shooter games, was acquired by Microsoft Corp. two years ago.

“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world's most iconic IP, and created significant value for our business,” said Andrew Wilson, chief executive officer of Electronic Arts. “This moment is a powerful recognition of their remarkable work.”

Going private will remove the distraction of quarterly earnings and investor demands. EA's strength in sports gives the company the predictable revenue that private equity firms like. The company's sports titles, including Madden NFL accounted for four of the industry's top 10 best sellers last year, according to the market research firm Circana. 

Analysts are also expecting a boost from Battlefield 6, the latest entry in the Redwood City, California-based company's popular shooter game franchise scheduled to be released on Oct. 10. Early buzz for the title has been strong and helped lift shares 15% this year before news of the buyout emerged. 

Silver Lake, which has a long history of investing in the tech sector, is participating in the acquisition of the US business of TikTok, Bloomberg News previously reported. 

For Saudi Arabia's PIF, it's the biggest bet yet on interactive entertainment for a fund that already has a significant investment in video games, including ownership of the maker of Pokémon Go. In 2023, the fund's Savvy Games Group bought Scopely Inc. for $4.9 billion, acquiring the company that released Monopoly Go!.

Most large deals with a foreign investor require some form of government approval. Affinity Partners — founded by the president's son-in-law during the first Trump administration — is backed by foreign investors, including some from the Middle East.

Goldman Sachs & Co. is serving as EA's financial adviser and J.P. Morgan Securities LLC is serving as financial adviser to the consortium.

Legal advisers include Wachtell, Lipton, Rosen & Katz for EA and Kirkland & Ellis LLP is serving as legal counsel to the consortium.