Saudi Arabia's Public Investment Fund is driving a landmark $55 billion leveraged buyout of Electronic Arts, committing more fresh capital than private equity heavyweight Silver Lake and Jared Kushner's Affinity Partners, according to people familiar with the deal.

The transaction calls for EA shareholders to receive $210 per share in cash, equating to a 25 percent premium over the stock's unaffected closing price on September 25. PIF, already holding approximately 9.9 percent of EA, will roll over that stake into the new private entity. The consortium expects to finance roughly $36 billion through equity contributions and $20 billion via debt financing led by JPMorgan. The buyout, which has been greenlighted by EA's board, is projected to close in fiscal Q1 2027 and will see EA delisted from public markets.

The PIF's dominant financial role in this deal represents a strategic pivot: the fund is aiming not simply to back a profitable gaming company, but to make Saudi Arabia a key hub in the global gaming ecosystem. The kingdom has already invested in companies such as Nintendo, Scopely, FACEIT and through its Savvy Games Group to deepen its footprint in esports and interactive entertainment.

Analysts observe that this takeover could give EA greater flexibility. Freed from quarterly market pressures, the company may pursue longer-term investments in technology like artificial intelligence, cross-platform integration and immersive gaming experiences. EA's CEO, Andrew Wilson, is expected to remain in place, and the company's headquarters will stay in Redwood City, California.

The broader gaming industry is watching closely. This deal wipes past the previous record for leveraged buyouts, surpassing the $32 billion TXU transaction in 2007. It comes at a moment when the sector is grappling with rising development costs, shifting consumer habits, and intensified competition from mobile and free-to-play platforms.

Critics caution that concentrated control of major gaming IP by sovereign funds raises questions about creative independence, censorship, and governance. Given Saudi Arabia's complex geopolitical profile, observers will assess how global regulatory bodies weigh foreign investment in cultural infrastructure.

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