Saudi Arabia’s PIF is set to acquire gaming giant EA for a record $55 billion all cash deal, along with Silver Lake and Affinity Partners, to mark the largest sponsor take private investment in history.
EA stockholders will receive $210 per share while PIF will roll over its existing 9.9% stake.
The acquisition aims to expand EA’s global reach, boost innovation, and unlock new, exciting opportunities in gaming and entertainment.
Acquiring Electronic Arts (EA)
In a groundbreaking move that reshapes the landscape of the gaming industry, Saudi Arabia’s Public Investment Fund (PIF), in collaboration with Silver Lake and Affinity Partners, has reached a definitive agreement to acquire Electronic Arts (EA) for an astounding $55 billion.
This monumental transaction to acquire EA, a publisher behind worldwide franchises like FIFA (now EA Sports FC), The Sims, and Apex Legends is not only marks the largest all-cash leveraged buyout in history but also positions the consortium at the forefront of the interactive entertainment sector.
The deal is expected to be finalized in the first quarter of FY27, pending standard closing requirements. These include securing the necessary regulatory approvals and obtaining approval from EA stockholders.
EA Agreement Overview
The acquisition agreement stipulates that the consortium will purchase 100% of EA, with shareholders receiving $210 per share in cash. This price represents a significant 25% premium over EA’s stock price prior to the announcement, reflecting the consortium’s confidence in the company’s potential.
The deal is expected to close in the first quarter of fiscal year 2027, pending regulatory approvals and shareholder consent.
Key Financial Details
- Total Valuation: $55 billion
- Per Share Price: $210
- Premium: 25% over the unaffected stock price
- PIF’s Existing Stake: 9.9% to be rolled over
This acquisition is not just a financial transaction; it symbolizes a strategic alignment of interests among the consortium members, who bring extensive experience and resources to the table.
Financial Structure of the Acquisition
The acquisition will be financed through a combination of equity and debt. The consortium plans to invest approximately $36 billion in equity, with the remaining $20 billion sourced from debt financing, primarily facilitated by JPMorgan Chase.
This financial structure not only underscores the consortium’s commitment to EA but also highlights the robust financial backing that will support EA’s ongoing operations and innovations.
The Role of Saudi Arabia’s PIF
Saudi Arabia’s Public Investment Fund (PIF) is pushing to create a globally competitive gaming and entertainment hub.
The planned EA acquisition, coming after major deals like the $4.9 billion purchase of Scopely (maker of Monopoly Go!) through Savvy Games Group, strengthens PIF’s influence over leading content platforms.
This move supports Vision 2030, which highlights entertainment, sports, and technology as core pillars of the Kingdom’s future economy. The UAE is also showing interest, with funds in Dubai and Abu Dhabi expanding investments in gaming and immersive technologies.
The Consortium’s Partners
The consortium is not solely comprised of PIF; it also includes Silver Lake and Affinity Partners, both of which bring valuable expertise and resources to the table.
Silver Lake’s Expertise
Silver Lake is a renowned technology investment firm with a strong track record in the gaming and entertainment sectors.
The firm’s experience in scaling technology companies will be instrumental in guiding EA’s growth trajectory. Silver Lake’s co-CEO, Egon Durban, expressed enthusiasm about the partnership, highlighting EA’s potential for revenue growth and innovation.
Affinity Partners’ Vision
Founded by Jared Kushner, Affinity Partners is a Miami-based investment firm that focuses on growth equity and technology investments. The firm’s involvement in the consortium adds a unique perspective, particularly in terms of leveraging technology to enhance user experiences.
Kushner’s personal connection to EA’s games further emphasizes the consortium’s commitment to fostering a vibrant gaming culture.
EA’s Legacy and Future
Electronic Arts has long been a leader in the gaming industry, known for its iconic franchises such as FIFA, The Sims, and Apex Legends. The company’s commitment to delivering high-quality gaming experiences has earned it a loyal fan base and significant market share.
A Strong Financial Performance
In fiscal year 2025, EA reported revenues of approximately $7.5 billion, showcasing its strong financial performance. This robust revenue stream provides a solid foundation for future growth, especially with the additional resources from the consortium.
Continued Leadership
Following the acquisition, EA will remain headquartered in Redwood City, California, and will continue to be led by CEO Andrew Wilson. His leadership has been instrumental in driving the company’s success, and the consortium’s support will further empower him to pursue ambitious growth strategies.
Strategic Implications for EA
The acquisition by the PIF-led consortium is poised to unlock new avenues for EA, allowing the company to focus on long-term innovation without the pressures of quarterly earnings reports.
This shift to a private ownership model will enable EA to invest more heavily in developing new gaming experiences and expanding its existing franchises.
Focus on Innovation
With the backing of PIF, Silver Lake, and Affinity Partners, EA can prioritize research and development, enhancing its ability to create groundbreaking gaming experiences. This focus on innovation is crucial in an industry that is rapidly evolving, with new technologies and platforms emerging regularly.
Shaping Gaming Landscape
The acquisition of Electronic Arts by Saudi Arabia’s PIF-led consortium represents a transformative moment for the gaming industry. With a focus on innovation, global expansion, and economic diversification, this deal is set to reshape the future of interactive entertainment.
As EA embarks on this new chapter, the support of its consortium partners will be instrumental in driving growth and delivering exceptional gaming experiences to fans worldwide.
More PIF’s Acquisitions
Major Stake in MBC Group
Saudi Arabia’s Public Investment Fund has acquired a 54% majority stake in broadcast giant MBC Group from Istedamah Holding Company for $2 billion.
The deal follows MBC’s recent 41% profit in the first half of 2025 and reached 150 million viewers worldwide.
The Group aims to boost Arabic content production, grow its SHAHID streaming platform, and explore new areas like gaming and events.
Acquisition of London Heathrow Airport
Saudi Arabia’s Public Investment Fund has acquired a 15% stake in London’s Heathrow Airport from Ferrovial and other shareholders.
Ardian, which is a French private equity firm, has also secured a 22.6% share.
The investment aligns with PIF’s strategy to support global aviation and also aligns with the launch of Riyadh Air, which is scheduled to take flight in 2025.
PIF’s Stake in Selfridges Department Store
Public Investment Fund (PIF) has acquired a 40% stake in Selfridges, the renowned British luxury department store, in collaboration with Central Group.
This partnership is designed to accelerate growth for Selfridges, especially for its well-known Oxford Street store in London.
The move fits PIF’s broader strategy to diversify its international investments and strengthen its portfolio in significant retail, sports, and hospitality industries.
The PIF’s Stake in STC
Saudi Arabia’s Public Investment Fund (PIF) has acquired the majority share of Saudi Telecom’s tower unit for $3.15 billion. This acquisition aims to merge the unit with other local assets to establish a prominent regional mobile tower entity.
The PIF will hold a 54% stake while STC will own 43%, jointly managing approximately 30,000 towers across five countries, which aligns with the economic transformation goals of Vision 2030.
As part of this new venture, STC will invest 533 million riyals in capital and utilize the proceeds from selling its towers unit, Tawal, to support domestic and international expansion.
Keep Reading: Saudi Arabia’s PIF Acquires 54% Majority Stake in MBC Group for $2 Billion
