Electronic Arts Set for $55B Acquisition by Saudi Fund and Kushner’s Firm
Saudi Arabia’s sovereign wealth fund, along with Jared Kushner’s Affinity Partners and Silver Lake, has acquired Electronic Arts in a $55 billion deal. The agreement is now the largest leveraged buyout in history, setting a milestone for the global gaming industry. EA shareholders are set to receive $210 per share in cash, reflecting a 25 percent premium over its stock price before deal rumours emerged. Shares surged following the news, trading above $200 after confirmation.
The acquisition will take EA private, ending its 36-year tenure as a publicly traded company. Once the deal closes, its stock will be delisted from NASDAQ, and the company will no longer issue public quarterly reports. Completion is expected by the spring or summer of 2026.
Financing and Structure
The transaction will be financed with about $36 billion in equity from the consortium, including the Saudi fund’s existing 9 percent stake. JPMorgan Chase is underwriting $20 billion in debt financing, with $18 billion earmarked for the closing. EA’s board of directors has approved the transaction, but regulatory and stakeholder approvals remain pending.
Industry analysts expect little resistance, as the deal offers significant returns to shareholders. Moreover, it avoids antitrust challenges, unlike Microsoft’s acquisition of Activision Blizzard, since it does not involve a merger of direct competitors.
Industry Impact and Reactions
EA, known for franchises such as Battlefield, Sports FC, Madden NFL, Mass Effect, and The Sims, will maintain its current leadership under CEO Andrew Wilson. Jared Kushner praised EA’s ability to create lasting entertainment experiences, calling the acquisition a personal and professional milestone.
Despite the optimism from investors, initial reactions within the gaming community have been mixed. Many journalists, streamers, and developers expressed concern over how such a large-scale financial takeover could affect creativity and the broader future of the gaming industry.
