September 29, 2025 — San Francisco, CA — Electronic Arts (EA), the renowned videogame developer behind titles like Battlefield and Madden NFL, has agreed to a historic $55 billion leveraged buyout (LBO), the largest in history, from a consortium of investors. The group comprises Saudi Arabia’s Public Investment Fund (PIF), Jared Kushner’s Affinity Partners, and private equity firm Silver Lake.
The acquisition deal, which will be financed through $36 billion in cash and $20 billion in debt, highlights a growing confidence in the long-term value of EA’s core franchises, particularly in a market recovering from years of sluggish growth. According to JPMorgan, the debt financing will allow the consortium to secure the largest-ever buyout, surpassing the previous record set by Texas utility TXU Energy in 2007 at $45 billion.
A Strategic Move in the Gaming Sector
This acquisition aligns with PIF’s strategy to diversify its investments, including its growing focus on the global gaming industry. For Jared Kushner’s Affinity Partners, this marks a significant expansion in their portfolio, with EA providing a steady stream of revenue through its popular game franchises. Silver Lake, a prominent player in tech-focused investments, adds yet another major asset to its portfolio, further solidifying its position in the gaming space.
EA’s leadership in the sports gaming segment, especially with its Madden NFL and FIFA series, is particularly attractive to investors, offering a steady revenue stream amid industry-wide volatility. The company’s ability to capitalize on in-game spending and loyal customer bases strengthens its long-term viability. With the highly anticipated Battlefield 6 set for launch, analysts expect the company to generate more than $2 billion in incremental bookings by 2028.
The Deal and Its Implications
Under the terms of the agreement, EA shareholders will receive $210 per share in cash, a 25% premium on the closing price as of September 25. This marks a 5% increase in the company’s stock price on news of the buyout, reaching approximately $203 per share.
The deal’s total equity value is $52.54 billion, according to Reuters’ calculations, and is expected to close by the first quarter of fiscal year 2027, with $18 billion in debt to be financed at closing. EA CEO Andrew Wilson will remain at the helm following the acquisition, and the company will continue operations from its headquarters in Redwood City, California.
Despite the apparent appeal of the offer, some analysts argue that the $210 per share offer price undervalues EA, particularly with the promising launch of Battlefield 6. According to Benchmark analysts, the Battlefield franchise’s earnings power is just beginning to fully materialize, suggesting that EA’s intrinsic value could be significantly higher.
Concerns and Future Projections
The deal also includes a $1 billion termination fee, which EA must pay if it backs out of the merger, accepts a higher bid, or pursues another transaction within a year of a shareholder rejection. The consortium would owe the same amount if regulatory delays push the deal’s completion past September 28, 2026, or if it breaches the agreement in other ways.
Despite concerns from some sectors about the long-term financial structure of leveraged buyouts—highlighted by the failures of previous deals like Toys “R” Us and Hertz—the gaming industry’s growth continues to attract significant investment. With the backing of the Public Investment Fund and other deep-pocketed investors, Electronic Arts stands poised to continue its dominance in the global gaming market.
