Saudi Arabia, Jared Kushner firms buy EA, makers of ‘Madden NFL,’ other video games, for $55 billion
Electronic Arts, the maker of franchises like Madden NFL, The Sims and Battlefront, has agreed to be acquired in a $55 billion private equity-led deal. The transaction is the largest of its kind in history and will take EA private after decades as a public company. Executives and investors say the move aims to free the studio from the short-term swings of the market so it can focus on long-term games and services.
The buyout is being led by Silver Lake and includes major funding from Saudi Arabia’s Public Investment Fund, along with Affinity Partners, the firm founded by Jared Kushner. Affinity Partners and Kushner’s involvement thrusts a former senior White House aide into a high-profile commercial media and entertainment deal. PIF already held a 9.9 percent stake in EA and will roll over that ownership into the new private structure.
EA shareholders will receive $210 per share to complete the deal, a premium that the board and advisers say fairly compensates investors for locked-in value. Management emphasized that moving off the quarterly earnings treadmill should allow for steadier investment in studios, live services and new technology. The company’s recent revenue hovered in the mid-single-digit billions, a pace some investors viewed as plateauing.
“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,” Kushner said. That line, repeated in the announcement, served as both personal endorsement and a nod to EA’s cultural footprint across generations. Kushner’s comment underscored a personal connection to the product rather than a statement about public policy or politics.
Officials described PIF’s participation as strategic rather than purely financial, noting a desire to help global entertainment and digital sectors grow. “This partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale,” said PIF spokesman Turqi Alnowaiser. That phrasing frames the deal as an industrial partnership aimed at building capacity and IP over time.
Operationally, taking EA private changes incentives and public reporting requirements, and it can reduce the pressure to meet quarterly targets. The new owners will have more latitude to invest in multi-year franchises, experimental studios and backend tech without immediate market scrutiny. For a company that monetizes through subscriptions, in-game purchases and live services, that flexibility can be decisive.
Many in the industry compared the deal to Microsoft’s acquisition of Activision Blizzard, which closed earlier and carried its own regulatory drama. Microsoft paid roughly $69 billion for Activision, creating one of the biggest consolidation moves in gaming, and EA’s sale follows that trend of consolidation at scale. Analysts say platform owners and investors are chasing content and user engagement, which are the real profit engines in modern gaming.
What this could mean for players and the market
For players, the ownership change could bring both benefits and uncertainties: bigger investments in live games, but also new commercial strategies for monetization and global distribution. Private ownership may prioritize creation of long-term tentpole franchises and cross-platform ecosystems that lock in recurring revenue. At the same time, decisions about pricing, game design and platform exclusivity will be in the hands of a smaller group of investors and executives.
Regulators and shareholders still have roles to play; the deal must clear shareholder votes and routine regulatory reviews before it can officially close, with the company targeting early fiscal 2027 for completion. That timeline leaves room for negotiations and potential changes to terms, but parties expressed confidence in getting final approvals. If approved, the transaction will reshape a major pillar of the video game business landscape.
EA’s management framed the sale as a path to renewed investment in franchises and technology, pointing to the competitive pressure from recent mega-deals and a shifting market for interactive entertainment. Investors who favored the buyout argued that private ownership can unlock creative risk-taking and long-horizon projects that are often unappealing to public markets. Skeptics caution that private equity can also bring cost-cutting pressures that affect studios and creative staff.
Beyond the corporate mechanics, the deal highlights a larger trend: global capital, including sovereign wealth funds, is playing an increasingly visible role in entertainment and technology. That infusion of capital can accelerate growth and cross-border collaboration, but it also raises questions about influence, governance and strategic priorities. Observers will be watching how the new ownership balances commercial goals with the creative and community expectations that fuel EA’s brands.
As the deal moves forward, industry watchers will monitor studio road maps, live service strategies and any shifts in platform deals or licensing. Fans of major franchises want clarity about planned sequels, crossovers and subscription ties, while investors look for signs of improved margins and sustained revenue growth. For now, the headlines are dominated by the scale of the agreement and the mix of public and private power it represents.
In short, EA’s sale is a landmark in gaming finance and corporate strategy, and it will be a clear test case for how private capital can steer major entertainment companies. The final outcome will touch players, developers, and the broader tech and media markets. Until shareholder votes and regulatory checks are complete, the industry will be parsing every statement and projection tied to the $55 billion deal.
