Saudi-Led $55 Billion Buyout of EA Approved; Company to Go Private
The European Commission has approved a $55 billion all-cash acquisition of Electronic Arts by a consortium led by Saudi Arabia's Public Investment Fund, with Silver Lake and Affinity Partners. The deal, which will take EA private and delist it from Nasdaq, includes a $210 per share cash payout, a 25% premium. PIF will hold about 93.7% of the company. EA's recent financial performance has been weak, with net income down 69.97% in the third quarter of fiscal 2026, amid a shift to games-as-a-service.
The European Commission released a document showing that Saudi Arabia's sovereign wealth fund, the Public Investment Fund, and an investor consortium have received approval under the EU Foreign Subsidies Regulation to acquire Electronic Arts (EA), the global video game developer, for $55 billion (approximately RMB371.5 billion).
In September 2025, EA announced it had reached a definitive agreement to be acquired by a consortium of investors consisting of the Public Investment Fund, Silver Lake, and Affinity Partners in an all-cash transaction, valuing EA at approximately $55 billion. The three funds will provide $36 billion in cash, with the remaining approximately $20 billion financed through loans from JPMorgan Chase. Existing shareholders will receive $210 per share in cash, a 25% premium to the unaffected share price. Upon completion, the Public Investment Fund will hold approximately 93.7% of shares, becoming the absolute controlling shareholder; Silver Lake will hold about 5.5%, and Affinity Partners about 1.1%. EA will be delisted from Nasdaq and become a private company.
EA was founded in 1982 and is one of the largest independent video game companies in the United States, primarily engaged in the production and distribution of interactive entertainment software, with broad influence in sports, racing, shooting, and role-playing genres. From 2001 to 2005, the company strengthened its sports game development capabilities by acquiring studios such as NuFX. From 2006 to 2008, it successively launched games such as Need for Speed: Carbon, Harry Potter and the Order of the Phoenix, and Spore. From 2019 to 2020, it released Need for Speed Heat, Rocket Arena, and EA Sports UFC 4.
In recent years, EA has reduced the number of games it releases, shifting toward 'games-as-a-service' aimed at generating recurring revenue. The football game EA Sports FC 25, released in 2024, and the annual flagship game Dragon Age: The Veilguard both performed poorly, exerting financial pressure on the company. EA's third-quarter fiscal 2026 financial report showed revenue of $1.901 billion, up 1% year over year, but net income fell sharply by 69.97% to $88 million, mainly due to fluctuations in in-game spending and franchise businesses.
Owing to performance pressure, EA has announced layoffs multiple times. In March 2023, EA announced it would cut about 6% of its workforce and reduce office space to focus spending on the best growth opportunities in the gaming industry.
As of the close on July 31, EA's share price was $209.86, with a market capitalization of $52.965 billion, up about 54% from the end of July 2023. This acquisition is the latest step in Saudi Arabia's blueprint to make itself a global hub for video games and sports. Saudi Arabia also aims to diversify its economy beyond oil through investments in infrastructure, tourism, sports, gaming, and other high-growth industries.