A group of investors, including a firm managed by President Donald Trump’s son-in-law Jared Kushner and Saudi Arabia’s sovereign wealth fund, have reached a $55 billion cash deal to acquire Electronic Arts, the gaming company behind Madden, N.F.L. and The Sims.
Electronic Arts CEO Andrew Wilson announced the deal, among the largest private equity firm buyouts of a company, to staff in a memo on Monday morning. It is the second biggest acquisition in gaming companies, following Microsoft’s $69 billion purchase of Activision Blizzard in 2023. Wilson shared that the decision to end Electronic Arts’ 36-year reign as a publicly traded company was “in the best interests of our company and our stockholders.”
“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business,” Wilson wrote in a . “This moment is a powerful recognition of their remarkable work. Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.”
The three entities taking 100% ownership of Electronic Arts are Kushner’s Affinity Partners, private equity company Silver Lake, and Saudi Arabia’s Public Investment Fund (PIF). Prior to the deal, PIF already possessed a 9.9% stake in Entertainment Arts. The $55 billion buyout includes $20 billion in debt financing from JPMorgan Chase.
Stockholders will be paid out $210 per share in cash, which is a 25% premium to EA’s share price before the news of the deal.
The deal is still subject to government approval as well as a sign-off by EA stockholders. However, it is expected to be finalized in Quarter 1 of fiscal year 2027.
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