Saudi fund, Kushner's firm to buy games maker Electronic Arts in $55bn deal

"Battlefield and Madden NFL developer agrees to sell itself in a deal that would be the largest leveraged buyout in history. Saudi Arabia's sovereign wealth fund, an investment company run by the son-in-law of the United States president, and a California-based private equity firm have bought gaming industry giant Electronic Arts (EA) in the largest leveraged buyout in history worth $55bn."

"Public Investment Fund (PIF), the $1 trillion Saudi venture that is increasingly buying stakes in the global entertainment industry, formed a consortium with Jared Kushner's Affinity Partners and technology and media-focused investment firm, Silver Lake. They reached a deal to pay EA shareholders $210 per share in cash, a 25 percent premium over the stock price of the company before rumours of the deal circulated last week, and even a premium over the all-time high stock price of more than $179 in mid-August."

"EA's shares jumped by 15 percent on the initial rumours, and have risen at least another 5 percent since the deal was confirmed on Monday, to trade at more than $200 per share on Tuesday. The deal takes the company private and is expected to close by the first quarter of the fiscal year 2027, meaning roughly the spring or summer of 2026."

Electronic Arts agreed to be acquired in a $55bn leveraged buyout that will take the company private. The buyers are Saudi Arabia's Public Investment Fund (PIF), Jared Kushner's Affinity Partners, and Silver Lake. The consortium agreed to pay shareholders $210 per share in cash, a 25 percent premium over the pre-rumour stock price and above the company's all-time high. EA shares jumped to trade above $200. The deal is financed with roughly $36bn in equity including PIF's rolled 9 percent stake, plus $20bn in debt from JPMorgan Chase, about $18bn of which will fund the closing. EA's 36-year run as a public company will end, the stock will be delisted, and public quarterly reporting will cease; the transaction is expected to close by the first quarter of fiscal 2027.

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