The deal that started as a $50 billion estimate closed as history’s largest leveraged buyout. Saudi Arabia’s sovereign wealth fund now controls 93.4% of the studio behind Madden, FIFA, and The Sims. Two US senators warned about it a year ago. The sale closed anyway.
Electronic Arts completed its sale to a Saudi-led investor consortium on August 4, ending a 37-year run as a public company that began with its 1989 Nasdaq debut. The consortium, led by Saudi Arabia’s Public Investment Fund alongside Silver Lake and Jared Kushner’s Affinity Partners, paid $210 per share in an all-cash transaction valuing EA at an enterprise value of approximately $55 billion. The deal ranks as the largest leveraged buyout in history, surpassing every previous take-private transaction across any industry. CEO Andrew Wilson stays on to lead the company under its new private ownership.
What’s Happening & Why It Matters
Who Controls EA
The ownership split reveals who holds power inside the private company. A December filing with Brazil’s antitrust regulator showed PIF taking 93.4% of EA following the buyout, with Silver Lake holding 5.5% and Affinity Partners holding 1.1%. PIF wasn’t a new entrant to EA’s cap table. The sovereign wealth fund already owned a 9.9% stake before the deal, and rolled that existing position into the acquisition rather than starting from zero.
Calling the transaction a “take-private deal” undersells what happened. Saudi Arabia’s Public Investment Fund holds effective control of the studio behind EA Sports FC, Madden NFL, Battlefield, Apex Legends, and The Sims. The $210-per-share price represented a 25% premium over EA’s unaffected share price of $168.32, and a premium even over the company’s all-time trading high from August 2025.
Political Warnings Didn’t Stop the Deal
Senators Richard Blumenthal and Elizabeth Warren wrote to Treasury Secretary Scott Bessent in October 2025, warning of foreign influence, national security, and user data risks tied to PIF’s role in the acquisition. Their concern wasn’t abstract. EA runs live-service platforms carrying massive player bases, account systems, and behavioural data, alongside AI-driven development tools built on top of that infrastructure.
The deal closed anyway, after clearing what the closing announcement described as “a national-security review that outlasted every other regulatory checkpoint combined.” Union workers and US politicians fought throughout the process, over the Saudi Arabian ownership structure and over Kushner’s direct involvement through Affinity Partners. Ten months of shareholder votes, antitrust reviews, and a missed initial deadline preceded Monday’s close.
A $20 Billion Debt
The buyout carries roughly $20 billion in acquisition debt, a load that shapes how the private company will operate going forward. CEO Andrew Wilson received $38.6 million in fiscal 2026 compensation, a figure 305 times EA’s median employee pay, and stands to receive as much as $125 million in severance if terminated following the change in control. That specific compensation structure is against a company carrying substantial new debt obligations it didn’t have as a public entity.
Wilson termed the transition around growth rather than cost-cutting in his own statement. “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,” he said. “We will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities.” Whether the act survives contact with $20 billion in debt service is the question EA’s workforce will keep close watch in the months ahead.
TF Summary: What’s Next
EA stock stopped trading and was delisted from public exchanges following the August 4 close. The company is headquartered in Redwood City, California, under Wilson’s continued leadership. No specific restructuring or cost-cutting plans have been announced since the deal closed. The consortium hasn’t detailed how it plans to service the roughly $20 billion in acquisition debt beyond Wilson’s general statement about accelerating growth.
MY FORECAST: Expect EA to announce a significant restructuring or workforce reduction within the next 12 to 18 months, given how $20 billion in acquisition debt pressures private gaming companies toward cost discipline once the closing celebration fades. Watch for PIF to steer EA toward deeper investment in esports and Middle East-focused gaming initiatives, consistent with the sovereign fund’s stated ambitions to position itself “at the heart of the interactive entertainment industry.” The national security review that outlasted every other regulatory checkpoint signals continued political scrutiny ahead, particularly around how EA’s player data and live-service infrastructure get governed under majority Saudi ownership.
Related Stories
- Fox Acquires Roku for $22 Billion — Streaming’s Biggest Deal in Years
- A Judge Just Halted Paramount’s $111 Billion Warner Bros. Discovery Acquisition
- SpaceX Slides on 12M Subscribers, AI Spending and Mobile Plans