Saudi Arabia and Jared Kushner Lead $55 Billion Acquisition of Electronic Arts

Electronic Arts (EA), the renowned video game publisher behind titles such as Madden NFL and Battlefield, has announced an agreement to be acquired for $55 billion. The acquisition is led by a consortium including Saudi Arabia's Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners, founded by Jared Kushner. This transaction marks the largest leveraged buyout in Wall Street history.

Under the terms of the deal, EA shareholders will receive $210 per share in cash, representing a 25% premium over the company's stock price prior to the announcement. The acquisition will result in EA becoming a privately held company, ending its 36-year tenure as a publicly traded entity.

Jared Kushner, CEO of Affinity Partners, expressed enthusiasm about the acquisition, stating, "Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future. I've admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games—and now enjoys them with his kids—I couldn't be more excited about what's ahead."

The PIF, which currently holds a 9.9% stake in EA, is expected to be the largest investor in the new corporate structure. Turqi Alnowaiser, head of international investments at PIF, commented, "PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators. PIF has demonstrated a strong commitment to these sectors, and this partnership will help further drive EA's long-term growth, while fueling innovation within the industry on a global scale."

EA's CEO, Andrew Wilson, will continue to lead the company post-acquisition. Wilson remarked, "Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world's most iconic [intellectual property], and created significant value for our business. This moment is a powerful recognition of their remarkable work."

The deal is subject to regulatory approvals and is expected to close in the first fiscal quarter of 2027. This acquisition aligns with Saudi Arabia's Vision 2030 initiative, aiming to diversify its economy and enhance its global presence in various sectors, including entertainment and technology.