The Public Investment Fund (PIF) of Saudi Arabia, along with private equity firms Silver Lake and Affinity Partners, completed the acquisition of video game developer Electronic Arts Inc. (EA) on August 4, 2026, for $55 billion.
| Acquirer | Public Investment Fund (PIF), Silver Lake, Affinity Partners |
| Target | Electronic Arts Inc. (EA) |
| Deal Value | $55 billion |
| Deal Type | Acquisition |
| Close Date | 2026-08-04 |
| Announcement Date | 2025-09-29 |
| Buy-side Financial Advisors | JP Morgan |
| Sell-side Financial Advisors | Goldman Sachs |
| Buy-side Legal Advisors | Kirkland & Ellis, Gibson Dunn & Crutcher, White & Case, Simpson Thacher & Bartlett, Sidley Austin |
| Sell-side Legal Advisors | Wachtell Lipton Rosen & Katz |
Deal Mechanics:
The $55 billion acquisition of EA by PIF and its private equity partners marks one of the largest leveraged buyouts in history. The deal, initially announced on September 29, 2025, involves a significant amount of debt financing with JP Morgan providing a substantial portion of the capital.
Strategic Rationale:
The acquisition aims to position EA for long-term growth and innovation by leveraging the financial resources and strategic support from its new owners. PIF's involvement signals an intent to enhance the company’s global influence, particularly in the intersection between gaming and sports, where Saudi Arabia has been making significant investments.
Financial Context:
In fiscal year 2025, EA generated revenue of $7.5 billion, with recent successes like Battlefield 6 breaking franchise sales records. The deal comes amid broader industry challenges but highlights the strategic value of EA's long-standing franchises and its ability to maintain robust financial performance despite setbacks.
Advisors:
The acquisition was facilitated by JP Morgan as buy-side financial advisor, with Goldman Sachs serving in a similar capacity for EA. Kirkland & Ellis, Gibson Dunn & Crutcher, White & Case, Simpson Thacher & Bartlett, and Sidley Austin provided legal counsel to the acquirer side, while Wachtell Lipton Rosen & Katz advised EA.
Outlook:
The acquisition marks a significant shift for EA as it transitions from public ownership to being privately held. The new owners' focus on leveraging the company's extensive player base and cultural influence could lead to substantial changes in how EA operates, particularly in terms of financing strategies and business models.