2026 Leveraged Buyout of Electronic Arts

Q: What was the total value of the Electronic Arts buyout?

The leveraged buyout was valued at US$55 billion.

Q: When was the deal finalized?

The transaction was officially completed on August 4, 2026.

Business and Finance2 min readAugust 10, 2026

Key Takeaways & Facts

The acquisition of Electronic Arts was completed on August 4, 2026, for US$55 billion.
The consortium of buyers included the Saudi Public Investment Fund, Silver Lake, and Affinity Partners.
The deal is the largest leveraged buyout in history to date.
The transaction resulted in a significant increase in Electronic Arts' corporate debt.

On August 4, 2026, the American video game company Electronic Arts (EA) completed a transition to private ownership through a leveraged buyout valued at US$55 billion. The transaction was initiated by a consortium of investors, including the Public Investment Fund (PIF) of Saudi Arabia, the private equity firm Silver Lake, and Affinity Partners, an investment firm founded by Jared Kushner.

Electronic Arts, a major publisher in the global video game industry, became a private entity in 2026.

Background and Negotiations

Discussions regarding the potential acquisition intensified in September 2025. Reports indicated that Jared Kushner played a central role in brokering the deal, leveraging established ties to Saudi leadership to secure the participation of the Public Investment Fund. JPMorgan Chase provided significant debt financing to facilitate the transaction. The deal was officially announced on September 29, 2025, with shareholders receiving US$210 per share, representing a 25% premium at the time of the agreement.

Financial district architecture — The acquisition was structured as a leveraged buyout, significantly increasing the debt burden of the target company.

Regulatory Approval and Completion

The transaction faced scrutiny due to the involvement of foreign state-backed investment. However, it secured necessary clearances, including approval under European Union merger rules in July 2026. The deal officially closed on August 4, 2026. Following the acquisition, the company's debt increased substantially, leading to industry concerns regarding potential future restructuring and layoffs.

Industry Impact

The buyout is recognized as the largest leveraged buyout in history. It reflects a broader trend of sovereign wealth funds, particularly the Saudi PIF, increasing their influence within the global entertainment and interactive media sectors. The acquisition granted the consortium control over major intellectual properties, including EA Sports FC, Battlefield, The Sims, and Madden NFL.

Frequently Asked Questions

Who led the acquisition of Electronic Arts?

The acquisition was led by a consortium comprising the Saudi Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners.

What was the total value of the Electronic Arts buyout?

When was the deal finalized?

References (10)

[1]
Gerken, Tom (September 29, 2025). "Gaming giant Electronic Arts bought in unprecedented $55bn deal". BBC News. Archived from the original on September 29, 2025. Retrieved November 8, 2025.
Source Link
[2]
Brown, Ben Dummett and Eliot (December 2, 2025). "Exclusive | Saudi Fund to Own Almost All of Electronic Arts After Buyout". The Wall Street Journal. Archived from the original on December 2, 2025. Retrieved December 2, 2025.
Source Link
[3]
Cress, Laura (August 4, 2026). "Saudi-led group completes $55bn purchase of gaming giant EA". BBC News. Archived from the original on August 5, 2026. Retrieved August 4, 2026.
Source Link
[4]
Gara, Antoine; Fontanella-Khan, James; Barnes, Oliver; Massoudi, Arash; Levingston, Ivan (September 29, 2025). "How Jared Kushner brokered the $55bn takeover of Electronic Arts". Financial Times. Archived from the original on September 30, 2025. Retrieved November 8, 2025.
Source Link
[5]
Thomas, Lauren; Toonkel, Jessica; Gottfried, Miriam (September 26, 2025). "Videogame Giant Electronic Arts Nears Roughly $50 Billion Deal to Go Private". The Wall Street Journal. Retrieved November 8, 2025.
Source Link
[6]
Takahashi, Dean (August 4, 2026). "Electronic Arts sold for $55B as Saudi-led coalition completes deal". GamesBeat.
Source Link
[7]
"Saudi PIF's $55 billion EA deal approved under EU merger rules". Reuters. July 23, 2026.
Source Link
[8]
Kachwala, Zaheer. "'Battlefield' maker Electronic Arts to go private in record-setting $55 billion LBO". Reuters. Retrieved November 8, 2025.
Source Link
[9]
Vinn, Milana; Kachwala, Zaheer (September 26, 2025). "Videogame maker EA in advanced talks to go private at roughly $50 billion valuation". Reuters. Retrieved November 8, 2025.
Source Link
[10]
Ritman, Alex; Maas, Jennifer (September 29, 2025). "Electronic Arts to Go Private in $55 Billion Deal Backed by Saudi Arabia, Silver Lake and Jared Kushner's Affinity Partners". Variety. Archived from the original on September 29, 2025. Retrieved November 8, 2025.
Source Link