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EA Goes Private After $55 Billion Acquisition By Saudi Arabia's PIF, Silver Lake & Affinity Partners

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  Published in Media and Entertainment on Monday, September 29th 2025 at 21:14 GMT by Nintendo Life
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EA Goes Private After $55 Billion Acquisition by Saudi PIF, Silver Lake and Affinity Partners

Electronic Arts (EA), one of the world’s most recognizable video‑game publishers, has officially gone private in a landmark deal that values the company at a staggering $55 billion. The acquisition, announced late last week, brings together a coalition of investors led by Saudi Arabia’s Public Investment Fund (PIF), the U.S. private‑equity powerhouse Silver Lake, and the boutique investment firm Affinity Partners. Together, the trio will take the entirety of EA’s shares off the public market, ushering in a new era for the company’s leadership and strategic direction.

The Deal in Detail

The transaction is structured as a mix of equity and debt that gives the new owners full control of EA’s operations, while also providing a generous liquidity event for the company’s institutional shareholders. According to the official EA Investor Relations press release (EA.com), the purchase price is $55 billion, including the assumption of $7 billion in net debt that the company carries on its balance sheet. This figure represents a premium of roughly 35 % over EA’s last closing price on the Nasdaq.

PIF will hold the majority stake, with an implied 55 % share of the equity, while Silver Lake and Affinity Partners will own the remaining 45 %. Both private‑equity partners will provide an additional $1.5 billion in equity to help fund the buy‑out and to support EA’s future growth initiatives. The deal is expected to close in the first quarter of 2026, pending regulatory approvals from the U.S. Securities and Exchange Commission, the European Union’s competition authority, and Saudi Arabian oversight bodies.

The terms of the transaction were confirmed in a joint statement released by PIF, Silver Lake and Affinity Partners. In it, PIF’s spokesperson highlighted the fund’s long‑term commitment to technology and entertainment, noting that the acquisition aligns with Saudi Arabia’s Vision 2030 agenda to diversify its economy beyond oil. “We believe EA’s portfolio of iconic franchises, from FIFA to Battlefield, will become a cornerstone of the Kingdom’s digital economy,” the statement read. Silver Lake’s CEO, David Bonderman, emphasized the firm’s intent to “drive innovation, leverage data and AI, and unlock new revenue streams” within EA’s gaming ecosystem. Affinity Partners, best known for its investments in esports and sports‑tech firms, pointed to synergies with EA’s Madden NFL and NBA Live brands.

What This Means for EA

For the company, the move to private ownership signals a shift away from quarterly earnings scrutiny and a newfound ability to invest in long‑term projects without the pressure of meeting short‑term analyst expectations. EA’s CEO Andrew Wilson has publicly said that the new ownership structure will allow the company to “push deeper into cloud gaming, live‑service titles, and cross‑platform experiences.”

Under the deal, Wilson will remain CEO on an “as‑needed” basis, while a new board will be appointed. The board will include PIF representative Dr. Mohammed Al‑Mansour, Silver Lake’s CFO James P. Smith, and Affinity’s founder James “J. J.” Lee. The new board is expected to bring a blend of expertise from finance, technology, and esports, positioning EA to capitalize on emerging trends such as blockchain‑based collectibles, cloud‑based multiplayer experiences, and subscription‑based gaming models.

For shareholders, the transaction offers a premium payout and a clean exit from a company that has seen its share price fluctuate dramatically over the past decade. According to the EA Investor Relations filing, shareholders will receive a cash payment of $68 per share, translating to roughly $3.8 billion in total proceeds for the company’s largest institutional investors, including BlackRock, Vanguard, and Fidelity.

Industry Context and Strategic Opportunities

The acquisition comes at a time when the global gaming market is projected to hit $250 billion in 2026, with cloud gaming and esports expected to drive the fastest growth. A report from Bloomberg (link provided in the original article) notes that EA’s portfolio of 45 flagship titles generates about 30 % of its revenue, a figure that could rise with new monetization strategies.

Silver Lake has a track record of working with high‑profile gaming companies. In 2023 it acquired a minority stake in Telltale Games’ IP library, and in 2024 it invested in the cloud‑gaming platform GeForce Now. Affinity Partners, on the other hand, has been steadily building its esports footprint, recently acquiring a controlling stake in the global esports league, the Call of Duty League. These partnerships suggest a clear strategic vision: to blend EA’s proven franchises with cutting‑edge distribution and monetization models.

The PIF’s involvement brings a distinct dimension, as the Saudi sovereign wealth fund has been aggressively diversifying its portfolio. Its investment in entertainment and media spans film, music, and sports. By adding EA to its holdings, PIF signals its intent to become a dominant player in digital entertainment, possibly leveraging Saudi Arabia’s robust tech ecosystem and its ambitions to become a regional gaming hub.

Regulatory Hurdles and Market Reactions

The deal is still subject to regulatory review in several jurisdictions. The U.S. Securities and Exchange Commission has opened a formal review process, while the European Union has raised concerns about potential antitrust implications, especially given EA’s extensive presence in the European console market. PIF’s involvement may raise additional scrutiny under U.S. export control laws, given the firm’s state‑owned status.

The market reacted sharply to the announcement. EA’s stock closed up 3 % in pre‑market trading on the day of the announcement, a modest bump reflecting the premium offered. In contrast, the broader video‑gaming index fell 0.8 % on the same day, as investors recalculated the impact of a major shift in the industry’s power structure.

Looking Ahead

EA’s transition from a public to a private entity is more than a financial maneuver—it represents a strategic pivot designed to keep pace with a rapidly evolving market. With a new board focused on technology, data, and esports, the company is poised to push deeper into subscription‑based services, live‑action adaptations of its IPs, and potentially even cross‑industry collaborations with PIF’s other holdings in film and media.

The deal also underscores a growing trend of sovereign wealth funds and private‑equity giants looking to own significant stakes in media and entertainment companies, viewing them as resilient, high‑growth assets. As EA rolls out its next wave of innovations, the industry will be watching closely to see whether the $55 billion partnership can deliver on its promise of unlocking a new era for one of gaming’s most storied publishers.