Electronic Arts (EA) agreed to a $55 billion go-private buyout, potentially becoming the largest private equity-funded acquisition in history. Saudi Arabia’s sovereign wealth fund (PIF), Silver Lake Partners, and Affinity Partners are leading the deal. They aim to close it by Q1 2027. EA owns hit franchises like Madden NFL, Battlefield, and The Sims. Going private could give EA more operational freedom and reduce shareholder pressure. This change may encourage creative growth or less aggressive monetization.
Concerns remain about the timing ahead of EA’s “Battlefield 6” release, which could raise valuation. Analysts also worry about job cuts after the buyout due to the $20 billion debt and recent layoffs. Saudi Arabia’s PIF owns 9.9% of EA and continues expanding in gaming and esports. Some critics label this strategy as “sportswashing,” targeting the kingdom’s youth demographic.
The deal still needs shareholder and regulatory approval. Experts say political connections might help navigate potential hurdles.
