Electronic Arts just agreed to the largest leveraged buyout in Wall Street history. The gaming giant behind Madden and The Sims will go private in a $55 billion all-cash deal with Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners, paying shareholders $210 per share - a premium that sent the stock soaring 6% in premarket trading.
Electronic Arts just pulled off the biggest gaming deal in history, and it's reshaping how we think about the entire industry. The $55 billion all-cash buyout announced Monday morning represents more than just another private equity play - it's a seismic shift that puts one of gaming's biggest publishers under the control of Saudi Arabia's sovereign wealth fund and Wall Street powerhouses.
The numbers tell the story of just how valuable gaming has become. At $210 per share, the consortium of the Public Investment Fund, Silver Lake, and Affinity Partners is paying a hefty premium for the maker of Madden, FIFA, and The Sims. EA's stock had already surged 15% Friday to $193.35 after the Wall Street Journal broke news of the pending deal, and it jumped another 6% in premarket trading before being halted.
What makes this deal particularly fascinating is the backing from Saudi Arabia's PIF, which already owns 9.9% of EA and is rolling that stake into the buyout. The sovereign wealth fund has been aggressively expanding into gaming and entertainment as part of Crown Prince Mohammed bin Salman's Vision 2030 diversification strategy. They've already invested billions in companies like Nintendo and Activision Blizzard, but this EA deal marks their biggest gaming bet yet.
Jared Kushner's involvement through Affinity Partners adds another layer of intrigue. The former White House advisor and Trump son-in-law has positioned his private equity firm as a bridge between Middle Eastern capital and American assets. "I've admired their ability to create iconic, lasting experiences, and 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 in EA's announcement.
The timing couldn't be more critical for EA, which has been under pressure to justify its premium valuation amid increasing competition from mobile gaming and changing player preferences. The company's traditional sports franchises like Madden and FIFA remain cash cows, but the shift toward live-service games and subscription models has created execution challenges. Going private gives EA breathing room to invest in long-term transformation without quarterly earnings pressure.
