Electronic Arts is an American video game company founded in the 1982 by Trip Hawkins, a former Apple employee. The company initially received financial support from venture capital firms, including Kleiner Perkins and Sequoia Capital. Prior to the announcement of the leveraged buyout, Electronic Arts's financial results were largely dependent on the profits from its most successful franchises, EA Sports FC (1994–present) and Madden NFL (1988–present), and the expected release of Battlefield 6 (2025). In early 2025, the company revised its financial forecast downward due to declining demand for soccer-themed video games.[1] Electronic Arts reported first-quarter financial results that slightly exceeded expectations but projected lower-than-expected net profits, citing uncertain demand and a weakening economic outlook.[2]
A leveraged buyout is an acquisition that primarily involves the use of leverage, or the use of borrowed funds, and the incorporation of private equity to fund the remainder of the acquisition.[1] Buyouts allow investors to seek changes in the pursuit of greater profits and resell companies at a higher price.[3] The market for large leveraged buyouts significantly weakened after the 2008 financial crisis;[1] the stock market crash following U.S. president Donald Trump's announcement of global tariffs in 2025 complicated attempted acquisitions and corporate deals.[3]
The consortium of investors seeking to purchase Electronic Arts involved the Public Investment Fund—a sovereign wealth fund operated by the government of Saudi Arabia, the private equity firm Silver Lake, and the investment firm Affinity Partners. The Public Investment Fund had a ten percent stake in Electronic Arts prior to the announcement and had other investments in the video game industry, including a direct stake in Take-Two Interactive and a separate video game investment company, Savvy Games Group.[1] Affinity Partners was founded by the businessman Jared Kushner, who is Trump's son-in-law; the company's investors include the Public Investment Fund, a relationship that drew criticism from Kushner's prior role in seeking Arab–Israeli normalization in Trump's first term.[3]
Leveraged buyout
Prelude and negotiations
The businessman Jared Kushner began pursuing an acquisition of Electronic Arts in 2025.
In 2011, Silver Lake executive Egon Durban began examining a potential acquisition of Electronic Arts. By August 2025, Jared Kushner had approached Durban regarding a deal. That month, they had reached a firm deal and approached Electronic Arts with their offer. According to the Financial Times, Kushner leveraged his relationship with Saudi Arabia to secure crown prince Mohammed bin Salman's support, later winning JPMorgan Chase chief executive Jamie Dimon's support.[4] According to the Journal, the leveraged buyout had been in discussion for several months, but talks accelerated in September.[5] On September 17, JPMorgan Chase agreed to a debt financing package.[4]
On September 26, 2025, The Wall Street Journal reported that a consortium of investors, including the Public Investment Fund, Silver Lake, and Affinity Partners, would acquire Electronic Arts for approximately US$50 billion in a leveraged buyout. The deal, if approved, would be the largest leveraged buyout in history.[1] According to the Financial Times, JPMorgan Chase was in discussions to arrange a debt financing package of over US$20 billion.[6]
Announcement
On September 29, 2025, Electronic Arts announced that it had agreed to a leveraged buyout.[5] The Public Investment Fund was expected to finance a majority of the US$36 billion equity investment and its stake would roll over, with Silver Lake investing out of a US$20.5 billion fund and Affinity Partners out of a US$3 billion fund.[7] The deal would give Electronic Arts's existing shareholders US$210 per share in cash, a premium to the company's share price at the previous day's close—after The Wall Street Journal's report—of twenty-five percent.[5] The agreement additionally surpassed the leveraged buyout of TXU Corporation in 2007 to become the largest leveraged buyout in history[5] and the second-most valuable acquisition in the gaming industry in history, after the acquisition of Activision Blizzard by Microsoft in 2023.[8]Andrew Wilson was set to remain as chief executive and the company was set to remain headquartered in Redwood City, California. The deal was approved by Electronic Arts's board of directors and was expected to close in the company's first quarter of its fiscal year,[9] or June 2026.[10][11] EA's shareholders approved the buyout in December 2025.[12]
The deal increased Electronic Arts’ debt to US$20 billion, up from a previous total of US$2.2 billion.[7] If Electronic Arts cancels the buyout, accepts a different offer, or pursues another deal within one year of shareholder rejection, it is required to pay US$1 billion. Similarly, if the consortium breaches the agreement or regulatory delays extend the process beyond one year, it must also pay US$1 billion.[13] Public Investment Fund will become the majority of Electronic Arts, while Silver Lake will be a large minority shareholder and Affinity Partners will have a five percent stake, according to the Financial Times.[4]
Regulatory approval
The leveraged buyout would need the approval of the Committee on Foreign Investment in the United States.[14] According to several individuals who spoke to the Financial Times, the deal is expected to pass "easily", given Kushner's relationship with his father-in-law Donald Trump and Mohammed.[4]
Responses
Industry and consumers
According to Reuters, a successful acquisition would "mark further consolidation within the industry" amid other publicly-traded video game companies going private, including Activision Blizzard and Zynga,[15] and would focus attention on leveraging intellectual property by diversification.[16]
The buyout elicited criticism from content creators involved in the community for The Sims 4 (2014), who expressed concern that the government of Saudi Arabia's stance on LGBTQ rights could threaten the game's efforts at inclusivity. Several content creators for The Sims 4, including Kayla Sims, James Turner, and Jesse McNamara, left Electronic Arts's creator program.[17]
Financial
Following The Wall Street Journal's report announcing a deal was nearing finalization, Electronic Arts's stock price increased fifteen percent, taking the company from a market capitalization of US$43 billion to US$48 billion.[1] According to The New York Times, a deal to take Electronic Arts private would allow the company's investors to take some of the titles and franchises in its portfolio and convert them into mobile games without the potential expense of having to report to investors in the public markets.[3] Reuters additionally estimated that the deal could "herald a comeback of massive leveraged buyouts".[13]
According to analysts with the venture capital firm Benchmark, the leveraged buyout offer was lower than Electronic Arts's "intrinsic value", noting the expected release of Battlefield 6 (2025) and a possible profit increase of US$2 billion by 2028.[13] The US$20 billion in debt Electronic Arts is expected to mount may force layoffs, lower budgets, and less risk-taking, according to The Verge.[18]United Videogame Workers-CWA, a union that includes Electronic Arts workers, criticized potential layoffs for expending employees in favor of attempting to "pad investor pockets".[19]
The leveraged buyout is an attempt by Saudi Arabia to develop its entertainment sector, fulfilling Saudi Vision 2030.[20] According to analysts who spoke to Reuters, the Public Investment Fund's interest in Electronic Arts involves the company's sports portfolio, including EA Sports FC.[15] According to The New York Times, it additionally extends the House of Saud's connection to U.S. president Donald Trump through Jared Kushner.[21]
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