Largest Buyout in History Takes Gaming Giant Private
In a landmark move that redefines the intersection of geopolitics, finance, and entertainment, Electronic Arts (EA) has agreed to be taken private in a staggering $55 billion deal—the largest corporate buyout ever recorded. The investor consortium includes Jared Kushner’s Affinity Partners, Saudi Arabia’s Public Investment Fund (PIF), and private equity powerhouse Silver Lake.
Deal Breakdown: Who’s Behind the Takeover?
- Saudi PIF: Already owned ~10% of EA; leading the charge as part of its $38B global gaming strategy.
- Affinity Partners: Jared Kushner’s private equity firm, marking its biggest investment to date.
- Silver Lake: Veteran tech investor with stakes in Dell, Qualtrics, and Alibaba.
- Financing: $20 billion loan arranged by JPMorgan Chase.
Key Deal Terms
| Metric | Detail |
|---|---|
| Total Value | $55 billion |
| Price Per Share | $210 (25% premium over pre-leak price) |
| Buyout Type | All-cash transaction |
| Status | Announced; pending regulatory approvals |
Why EA? Why Now?
Electronic Arts is a sports gaming titan, home to blockbuster franchises like Madden NFL, FIFA/EA Sports FC, and NHL. With over 500 million players globally and $7.5 billion in annual revenue, EA represents a strategic crown jewel in the booming $200B+ global gaming market.
The Saudi PIF has aggressively expanded into gaming since 2021 through its Savvy Games Group, which hosted the $70M Esports World Cup in Riyadh this summer. This acquisition cements the kingdom’s ambition to become a global entertainment hub beyond oil.
Infographic: Saudi Arabia’s Gaming Empire
Credit: The New York Times
- 2021: Saudi PIF launches Savvy Games Group with $38B commitment.
- 2023: Acquires major stakes in Japanese and Korean game studios.
- 2024: Hosts Esports World Cup in Riyadh.
- 2025: Leads $55B buyout of Electronic Arts.
Controversy and Concerns
The deal has reignited debate over “sportswashing” and foreign influence in U.S. tech. Critics question the implications of a U.S. cultural icon like EA—creator of games played by millions of American teens—falling under partial control of a foreign government with a contested human rights record.
Meanwhile, EA employees and fans worry about potential shifts in creative direction, data privacy, or game monetization under new ownership.
Market Impact
EA shares surged 24% on the announcement. The deal also sent ripples through the gaming sector, with Take-Two Interactive and Activision Blizzard seeing modest gains on speculation of further consolidation.
For more on the geopolitics of gaming, see our feature on [INTERNAL_LINK:gaming and global power].
