Electronic Arts, the powerhouse behind gaming hits like Battlefield and Madden NFL, is set to go private in a record-shattering $55 billion buyout.
The deal, backed by Saudi Arabia’s Public Investment Fund (PIF), Jared Kushner’s Affinity Partners, and private equity giant Silver Lake, marks the largest leveraged buyout in history — signaling just how valuable blockbuster game franchises remain in an industry still recovering from a downturn.
The investor group is financing the takeover with $36 billion in cash, equity already held by PIF, and $20 billion in debt arranged by JPMorgan, Electronic Arts confirmed on Monday.
This landmark agreement highlights the increasing interest of deep-pocketed investors in securing long-term stakes in the gaming industry, even as publishers face slowing growth and more discerning consumer spending.
The buyout also reshapes the landscape of leveraged buyouts (LBOs). At $55 billion, the deal surpasses the previous record — the $45 billion takeover of Texas utility TXU Energy in 2007 by KKR, TPG, and Goldman Sachs, which ultimately led to bankruptcy by 2014. Other high-profile LBOs, such as Toys “R” Us and Hertz, also crumbled under the pressure of debt, highlighting the risks involved.
Under the terms, EA shareholders will receive $210 per share in cash, representing a 25% premium on the company’s closing price of September 25, prior to the announcement of the deal. Shares rose 5% in Monday trading, reaching about $203. Reuters calculated the equity value at $52.54 billion.
The deal arrives at a pivotal time for EA. The company is betting heavily on its evergreen sports franchises and its upcoming release of Battlefield 6 to sustain growth. Benchmark analysts, however, believe the buyout price underestimates EA’s future potential. “With Battlefield 6 about to launch and a pipeline that could add more than $2B in incremental bookings by FY28, the true earnings power of EA is only beginning to emerge,” the firm said.
EA’s sports portfolio — including FIFA, now rebranded EA Sports FC, and Madden NFL — has long delivered steady recurring revenue, driven by global popularity and strong in-game spending habits.
The Redwood City, California-based company will remain under the leadership of CEO Andrew Wilson after the transaction, which is expected to close in the first quarter of fiscal 2027.
If EA’s board reverses course, pursues another bidder, or shareholders reject the deal, the company must pay a $1 billion breakup fee. The consortium, in turn, faces the same penalty if regulatory delays extend the process beyond September 28, 2026, or if it breaches the terms of the agreement.