REDWOOD CITY, Calif. (Diya TV) — Electronic Arts, one of the world’s largest video game publishers, announced Monday that it has agreed to be taken private in a historic $55 billion deal. The investors behind the move include Jared Kushner’s investment firm, Affinity Partners, and Saudi Arabia’s sovereign wealth fund, the Public Investment Fund.
The agreement would pay Electronic Arts stockholders $210 per share in cash. That represents a 25% premium over the company’s share price before news of the deal leaked. If completed, the buyout would be the largest ever of a publicly traded company, not adjusting for inflation. The investors plan to fund part of the deal with a $20 billion loan from JPMorgan Chase.
The acquisition is led by Saudi Arabia’s Public Investment Fund, which already owns about 10% of Electronic Arts. The deal also involves Silver Lake, a major private equity firm, and Jared Kushner’s Affinity Partners, which manages roughly $5.4 billion.
The Saudi fund has been aggressively moving into the gaming sector. In 2021, it created Savvy Games Group to oversee a planned $38 billion investment in the industry. This summer, Saudi Arabia hosted the Esports World Cup, a video game tournament with $70 million in prize money.
The fund’s gaming push is part of a larger strategy to invest in sports worldwide. The kingdom backs LIV Golf, the Professional Fighters League, and various soccer ventures. Electronic Arts is a leader in sports video games, with franchises including EA Sports FC for soccer and Madden for football.
“People don’t often think about video games and national security together, but these are platforms that reach millions of Americans and often collect a lot of personal data,” said Aaron Bartnick, a former Biden administration official and Columbia University fellow.
The deal will require approval from the Committee on Foreign Investment in the United States, which reviews international acquisitions for national security concerns. Some lawmakers have previously questioned the Saudi fund’s investments in sports and gaming due to national security implications.
Merger reviews often involve political considerations. The Trump administration had close ties with Saudi Arabia, and Kushner’s investment firm has links to the Saudi fund.
Electronic Arts would pay a $1 billion termination fee if its board or shareholders reject the deal. Investors would also face a $1 billion fee if they cannot secure regulatory approval. Analysts have speculated that major media companies like Disney could have attempted to buy Electronic Arts, which highlights the competitive interest in the gaming industry.
The gaming industry is shifting as players favor free-to-play and mobile games over traditional console and PC titles. Games like Fortnite have shown the appeal of easily accessible content on smartphones and streaming devices.
Analysts predict that the Saudi-backed plan could make some of Electronic Arts’ most popular games free-to-play across multiple platforms. Strategies could include in-app purchases or partnerships with popular streamers to expand reach. Companies like Netflix are also exploring gaming for connected TVs, showing the potential growth in casual and mobile gaming.
Electronic Arts plans to remain headquartered in Redwood City, California, with Andrew Wilson continuing as CEO. The acquisition is expected to close in the second quarter of 2026.
Wilson said, “I am more energized than ever about the future we are building,” signaling confidence in the new ownership and the company’s direction.
