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Saudi-led group takes Electronic Arts private in record buyout

Saudi-led group takes Electronic Arts private in record buyout

Money Moves

EA leaves the stock market after 37 years, bought by Saudi Arabia's wealth fund, Silver Lake, and Jared Kushner's Affinity Partners

August 4th, 2026: Record buyout closes

Overview

Updated Aug 4

Electronic Arts has been a public company since 1989. On August 4, 2026, that ended. A group led by Saudi Arabia's Public Investment Fund bought the maker of Madden, The Sims, and Battlefield for about $55 billion and took it private.

It is the largest leveraged buyout ever recorded. That means most of the price was covered by borrowed money: JPMorgan Chase committed $20 billion in loans against EA itself. One of the world's biggest game publishers now answers to a Saudi state fund, private-equity firm Silver Lake, and Jared Kushner's Affinity Partners instead of public shareholders.

Why it matters

A foreign government fund now controls the studios behind Madden, FIFA-successor EA FC, and The Sims, and EA carries $20 billion in new debt to pay for it.

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Key Indicators

$55B
Total deal value
The largest leveraged buyout on record, topping the 2007 TXU deal.
$210
Cash paid per share
A 25% premium over EA's $168.32 price before the deal leaked.
$20B
Debt financing from JPMorgan
The bank committed the full amount on its own books; about $18 billion drawn at close.
93.4%
Stake held by Saudi PIF
Silver Lake holds about 5.5% and Affinity Partners about 1.1%.
37 years
Time EA spent as a public company
EA first sold shares to the public in September 1989.

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People Involved

Organizations Involved

Timeline

September 1989 August 2026

7 events Latest: August 4th, 2026 · 1 month ago
Tap a bar to jump to that date
  1. Record buyout closes

    Latest Deal

    EA completes its roughly $55 billion take-private and delists. Shareholders receive $210 per share in cash. It is the largest leveraged buyout on record.

  2. EU clears the deal

    Regulatory

    European regulators approve the buyout under foreign-subsidy rules, leaving the U.S. security review as the last hurdle.

  3. Deadline slips

    Regulatory

    The deal misses its original closing date as CFIUS keeps reviewing. Parties extend the outside date to September 28, 2026.

  4. JPMorgan starts selling the debt

    Financing

    JPMorgan begins syndicating the $20 billion of buyout debt, the biggest single ask of the LBO debt market since 2008.

  5. Union flags AI and data concerns

    Opposition

    The Communications Workers of America asks the FTC and CFIUS to examine EA's AI work under foreign state ownership.

  6. Buyout announced at $210 a share

    Deal

    EA agrees to a $55 billion take-private led by Saudi Arabia's PIF, with Silver Lake and Affinity Partners. The price is a 25% premium over EA's undisturbed stock.

  7. EA goes public

    Background

    Electronic Arts sells shares to the public and begins its run as a listed company.

Scenarios

1

EA cuts jobs within a year of going private

Likely Resolves by Aug 4, 2027

Discussed by: Game developers and the Communications Workers of America, citing the debt load

Leveraged buyouts often push new owners to trim costs to service debt. With $20 billion in loans on EA's books, staff and their union expect layoffs or studio closures. This resolves YES if EA publicly announces a round of layoffs affecting its workforce within twelve months of the close.

2

PIF makes another billion-dollar gaming buy

Possible Resolves by End of 2027

Discussed by: Analysts tracking Saudi Vision 2030 and Savvy Games Group

The Saudi fund has spent years building a gaming portfolio and may use EA as an anchor for more deals. This resolves YES if PIF or a fund-controlled entity announces another gaming acquisition worth at least $1 billion before the end of 2027.

3

EA returns to the stock market

Possible Resolves by Aug 4, 2031

Discussed by: Investors citing Silver Lake's Dell playbook

Private-equity owners often relist companies after a few years at a higher value. Silver Lake did exactly that with Dell. This resolves YES if EA files for or completes a new initial public offering by August 2031.

4

Congress opens a formal probe of the deal

Unlikely Resolves by End of 2027

Discussed by: Lawmakers who questioned Saudi and Kushner involvement during review

The combination of a foreign state fund and the president's son-in-law's firm drew political attention. This resolves YES if a U.S. congressional committee announces a formal investigation or hearing into the EA-PIF transaction before the end of 2027.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

October 2007

TXU leveraged buyout (2007)

KKR, TPG, and Goldman Sachs bought Texas power utility TXU for about $45 billion, then the biggest leveraged buyout ever. Most of the price was borrowed against the company. It was renamed Energy Future Holdings.

Then

The company carried roughly $40 billion in debt into a falling natural-gas market.

Now

Energy Future Holdings filed for bankruptcy in 2014, wiping out much of the equity. It became a warning about buyouts loaded with debt.

Why this matters now

EA's deal just topped TXU as the largest leveraged buyout on record. TXU shows how heavy debt can turn a record price into a trap if the business stumbles.

October 2013

Silver Lake takes Dell private (2013)

Michael Dell and Silver Lake bought computer maker Dell for about $24 billion and pulled it off the stock market. Critics said the price was too low; the deal survived a shareholder fight.

Then

Dell restructured away from public-market pressure and made a big acquisition of data-storage firm EMC.

Now

Dell returned to public markets in 2018 at a far higher value, making the buyout a private-equity success.

Why this matters now

Silver Lake is a partner in the EA deal and ran the Dell playbook. It is the model behind bets that EA could relist at a profit years from now.

October 2023

Microsoft buys Activision Blizzard (2023)

Microsoft closed a $69 billion purchase of game publisher Activision Blizzard after nearly two years of regulatory fights in the U.S., U.K., and EU. Antitrust agencies worried about control of major franchises.

Then

Microsoft made concessions on cloud-gaming rights to win approval.

Now

The deal set a template for the long regulatory reviews that now shadow big gaming takeovers.

Why this matters now

It shows how regulators scrutinize control of major game franchises. EA's review focused instead on foreign state ownership of player data and AI.

Sources

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