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A consortium led by Saudi Arabia’s Public Investment Fund (PIF) has agreed to acquire the video game giant Electronic Arts (EA) in a $55bn leveraged buyout that will take EA private and leave it with $20bn in loan-financed debt.

The all-cash deal will make it the largest leveraged buyout in history upon its expected finalisation in early 2026, subject to regulatory and shareholder approval.

The other investors in the consortium include the US private equity firm Silver Lake and US investment firm Affinity Partners, founded by Jared Kushner, the son-in-law of US President Donald Trump.

After the acquisition is completed, EA will be delisted from the stock exchange and become a private entity, into which PIF will roll over its existing 9.9% stake.

Exiting EA stockholders will meanwhile receive $210 per share – a 25% premium on the unaffected stock price before the news of the deal was leaked.

EA CEO Andrew Wilson will remain in his position, and the company will continue to be headquartered in Redwood City, California.

Wider ambitions

This acquisition marks the largest investment in the game industry and the most significant move yet in Saudi Arabia’s broader strategy to expand its presence and influence in the global gaming and esports industry.

PIF has made the expansion of the Saudi gaming industry and the growth of Saudi assets in the sector a key spoke of its economic diversification efforts through to 2030.

The move to take EA private comes after a period of stagnant revenues for the company amid increased competition from free-to-play mobile games. The deal also comes just two years after Microsoft acquired game company Activision Blizzard.

By going private, EA could potentially leverage its newfound freedom from quarterly financial reporting and the need to cater to market sentiment as a breathing space that allows it to refocus its attention on industry innovation.

Concerns nevertheless remain over the $20bn in debt, financed by JPMorgan, that will now hang over the company. The cost of debt servicing could just as readily push investors to cut costs or prioritise cash flow over taking creative risks.