Gaming giant Electronic Arts taken private in $55B Saudi-backed buyout
The transaction represents a significant deal involving entities close to the Saudi Arabian and US governments.
Saudi Arabia’s Public Investment Fund (PIF), Jared Kushner’s private equity firm Affinity Partners and US technology investor Silver Lake have announced the $55 billion buyout of video games giant Electronic Arts, further cementing the kingdom's investments in the esports sector.
An EA statement on Monday said that the consortium of three companies would acquire 100% of the gaming firm. The deal, which takes EA private, is the largest all-cash sponsor take-private investment in history, according to the company. It has been approved by EA’s board of directors and is expected to close in the first quarter of 2027, following regulatory and EA stockholder approvals.
California-based EA must pay a $1 billion fee if it terminates the takeover due to a board reversal, accepts a higher bid or pursues another deal within a year of a shareholder rejection.
The acquisition will be funded through a combination of cash from the three consortium companies, the rollover of the PIF’s existing 9.99% stake and $20 billion in debt financing from JP Morgan Chase Bank.
