- Electronic Arts to be taken private in the largest all-cash leveraged buyout in history, valued at US$55 billion.
- Shareholders will receive US$210 per share in cash — a 25 per cent premium to EA’s unaffected share price.
- Saudi Arabia’s Public Investment Fund leads consortium alongside Silver Lake and Affinity Partners; deal expected to close in fiscal Q1 2027 pending approvals.
- Canadian operations, including EA Vancouver in Burnaby, face uncertainty around jobs, culture, and future investment.
Electronic Arts (NASDAQ:EA), the California-based video game publisher behind global titles such as EA Sports FC, The Sims, Apex Legends, and Madden NFL, has agreed to a US$55 billion leveraged buyout that will take the company private.
The consortium acquiring EA is led by Saudi Arabia’s Public Investment Fund (PIF), alongside U.S. private equity firm Silver Lake and Affinity Partners, the investment fund headed by Jared Kushner.
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“The Board carefully evaluated this opportunity and concluded it delivers compelling value for stockholders and is in the best interests of all stakeholders,” said Luis A. Ubiñas, Lead Independent Director of EA’s Board of Directors.
He continued, “We are pleased that this transaction delivers immediate and certain cash value to our stockholders while strengthening EA’s ability to continue building the communities and experiences that define the future of entertainment.”
Structure of the deal
The offer values EA at US$210 per share in cash, a 25 per cent premium to its unaffected closing price of US$168.32 on September 25. However, EA shares rocketed after news of the acquisition, and were valued at US$201.00 as of October 2nd.
The deal eclipses even some of the biggest technology buyouts to date and is being described as the largest all-cash sponsor-led take-private transaction in history.
The acquisition will be financed through approximately US$36 billion in equity commitments from the consortium and US$20 billion in debt financing led by JPMorgan Chase. Of that debt, US$18 billion is expected to fund at closing.
Saudi Arabia’s PIF, which already held a 9.9 per cent stake in EA, will roll over its shares.
Upon completion, EA will delist from the NASDAQ but continue to operate from its headquarters in Redwood City, California. CEO Andrew Wilson is set to remain in place.
A bet on global entertainment
The backers emphasized that the buyout reflects confidence in EA’s intellectual property and leadership.
“Electronic Arts is a powerful recognition of our teams, our creativity, and our IP,” said Wilson. “Together we will continue to push the boundaries of entertainment, sports, and technology.”
Silver Lake co-CEO Egon Durban highlighted Wilson’s track record, pointing out that under his leadership, EA has doubled revenue and increased its market cap fivefold.
Saudi Arabia’s expanding role in gaming
The buyout reflects Saudi Arabia’s growing ambition to become a global gaming leader. PIF has invested heavily in Nintendo, Capcom, and Activision Blizzard, and in 2022 committed US$38 billion through Savvy Games Group to establish a world-class gaming hub.
The acquisition of Electronic Arts — publisher of EA Sports FC, The Sims, Apex Legends, and Madden NFL — cements Saudi Arabia’s influence in mainstream Western gaming. Analysts note that such deals serve both economic diversification and reputational aims, with critics dubbing the strategy “game-washing.”
Turqi Alnowaiser, Deputy Governor of PIF, described the move as part of a strategy to “build and support ecosystems that connect fans, developers, and IP creators” in global gaming and esports.
Alnowaiser positioned the acquisition within Saudi Arabia’s Vision 2030 diversification strategy, which aims to reduce dependence on oil revenues.
Impact on Canada: Burnaby in spotlight
The deal has raised questions in Canada, where EA Vancouver in Burnaby, B.C. is a cornerstone of the local digital entertainment economy. The studio employs thousands of developers and is the lead hub for EA Sports titles.
According to reports by CBC News, uncertainty remains around how private ownership may affect Canadian operations. Leveraged buyouts often lead to cost-cutting measures, and industry observers say future investment in B.C. could be influenced by the financial obligations tied to the US$20 billion debt financing.
British Columbia’s gaming and VFX sectors contribute billions annually to the provincial economy and EA’s Burnaby campus plays a central role in attracting talent and investment.
Any disruption at EA Vancouver could ripple across Canada’s broader labour market, particularly in technology and creative industries.
EA’s leadership addressed employee concerns directly in an internal note telling staff, “There will be no immediate changes to your job, team, or daily work, as a result of this transaction.”
Market reaction and next steps
EA’s stock quickly climbed toward the US$210 offer price, reflecting investor confidence in the deal’s completion.
The company recently reported fiscal 2025 GAAP net revenue of approximately US$7.5 billion, highlighting its profitability and growth potential.
The transaction has been unanimously approved by EA’s board but remains subject to shareholder approval and regulatory review across multiple jurisdictions.
Regulators in the U.S., Europe, and Canada may evaluate the deal in the context of competition, foreign ownership, and labour market impact.
While the offer represents a significant premium, several shareholder rights firms have announced investigations into the transaction.
These investigations are aimed at determining whether the US$210 per share cash offer undervalues the company and whether board directors acted in the best interests of shareholders.
Such legal actions are common in large mergers and acquisitions but can influence deal outcomes.
If approved, the acquisition will transform EA into one of the most prominent Western gaming companies under private ownership with significant sovereign wealth backing.
For investors, the immediate issue is the value of the US$210 per share payout — already the subject of shareholder probes. For Canada’s workforce, the longer-term concern is how EA Vancouver and other global studios adapt under private, highly leveraged ownership.
Globally, the acquisition underscores Saudi Arabia’s strategy of using sovereign wealth to buy into cultural and entertainment sectors, with gaming at the centre of its diversification plans.
EA’s stock (NASDAQ:EA) opened marginally lower on Friday at US$200.91 but has risen nearly 4 per cent this week.
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