EA sold in record $52.5 billion buyout

Electronic Arts will be taken private in the largest leveraged buyout in history, marking a major bet on the gaming industry’s long-term value. The deal underscores Wall Street’s renewed appetite for risk and Saudi Arabia’s growing ambitions in global entertainment.

Electronic Arts (EA), the California-based video game maker behind Battlefield, The Sims and Madden NFL, will be acquired for $52.5 billion by a consortium led by Silver Lake Partners, Saudi Arabia’s Public Investment Fund (PIF) and Affinity Partners, the investment firm founded by Jared Kushner, son-in-law of former U.S. President Donald Trump. Including debt, the transaction values EA at about $55 billion, making it the largest leveraged buyout (LBO) ever executed by private equity investors.

EA will remain headquartered in Redwood City, California, and keep its major studio in Burnaby, Canada, which employs about 2,400 people. The company will be taken private, and CEO Andrew Wilson will continue in his role. According to ICE Toronto, the acquisition is expected to close by the first quarter of 2027, pending shareholder approval. The Saudi PIF, through its Savvy Gaming Group, has been investing heavily in the gaming sector since 2022, acquiring ESL, FACEIT and Scopely, as well as a stake in Nintendo.

The transaction surpasses the previous record set in 2007, when energy company TXU was taken private for $32 billion. JPMorgan Chase & Co. is leading the financing effort with an unprecedented $20 billion debt commitment, the largest ever by a single lender for an LBO. Banks involved in arranging and syndicating the financing are expected to earn roughly $500 million in fees.

Analysts say the deal will test the capacity of global leveraged finance markets and reflects a renewed confidence among major banks in the broader credit environment. As inflation eases and interest rates stabilize, investor appetite for high-yield assets such as junk bonds and syndicated loans has been rising, setting the stage for the successful placement of the massive debt package.

For the new owners, the acquisition is about more than financial returns. Saudi Arabia views the move as part of its strategy to become a global hub for gaming and esports, while Silver Lake and Affinity Partners are betting on the long-term resilience of gaming IPs in the age of artificial intelligence. Still, industry observers note that slower growth across the $178 billion global gaming market and rising development costs could push EA toward restructuring and cost optimization once it becomes a private company.