A consortium led by Saudi Arabia's Public Investment Fund is set to acquire Electronic Arts for $55 billion, with the fund holding 93 percent ownership upon completion. The deal, involving investors like Jared Kushner, Silver Lake, and Affinity, is expected to close by mid-2026 following a shareholder vote later this month. This move raises questions about the future of EA's major franchises amid potential financial pressures.
Deal Overview
The leveraged buyout of Electronic Arts (EA), the publisher behind titles like Battlefield, Madden, EA Sports FC, The Sims, and Apex Legends, values the company at $55 billion. According to filings with Brazil's antitrust regulator, Saudi Arabia's Public Investment Fund (PIF) will emerge as the dominant owner with a 93 percent stake. Other participants include Silver Lake at 5.5 percent and Affinity at 1.1 percent, both of which receive funding from Saudi sources.
Jared Kushner, son-in-law of President Trump, played a role in facilitating the agreement, as reported by the Financial Times, though SEC filings omit this detail. The transaction relies on $20 billion in loans, prompting concerns over high-interest debt servicing. Analysts suggest this could lead to budget cuts or studio sell-offs to stabilize finances, especially as Saudi Arabia's Public Investment Fund has withdrawn from other U.S. investments amid economic challenges.
Timeline and Implications
EA shareholders are scheduled to vote on the buyout offer later in December 2025, with closure targeted for mid-2026. The deal inverts typical private equity structures, positioning the sovereign wealth fund as the primary controller rather than a minor partner. Recent meetings between Crown Prince Mohammed bin Salman and President Trump touched on broader U.S.-Saudi ties, including AI chips and defense, but avoided specifics on the EA transaction.
Wall Street benefits significantly, with Goldman Sachs earning $110 million in consulting fees. For EA's workforce, the acquisition could mean job losses, contrasting with the lucrative payout for investors and bankers.