If finalized, shareholders would receive $210 per share in cash — a 25% premium over the stock’s pre-announcement price. Backed partly by a $20 billion loan from JPMorgan, the deal would become the largest acquisition of a publicly traded company in history, unadjusted for inflation.

A tectonic shift is underway in the gaming industry: Electronic Arts could soon be acquired in a record-breaking $55 billion deal led by Saudi Arabia’s Public Investment Fund (PIF), which already holds a 10% stake in the company. The consortium also includes private equity giant Silver Lake and Jared Kushner’s Affinity Partners.

The buyout is part of Riyadh’s broader push to diversify its economy beyond oil by investing heavily in entertainment and technology. In 2021, the PIF launched Savvy Games Group to oversee a planned $38 billion push into gaming. This summer, the kingdom hosted the Esports World Cup, boasting a record $70 million prize pool.

Saudi Arabia’s gaming ambitions are tied to an even bigger bet on sports — with investments ranging from LIV Golf to the Professional Fighters League and significant stakes in soccer clubs at home and abroad. That aligns naturally with EA’s profile, as the publisher dominates the sports gaming market with series like FIFA and Madden.

“We’re uniquely positioned to shape and grow global gaming and esports ecosystems,” said Turqi Alnowaiser, deputy governor of the PIF. EA CEO Andrew Wilson echoed the optimism: “I’ve never been more excited about the future we’re building together.”

Security Scrutiny and Political Implications

If completed, the deal would eclipse the previous record — a $32 billion acquisition of Texas utility TXU in 2007. But first, it must pass review by the Committee on Foreign Investment in the United States (CFIUS), which evaluates foreign deals for national security risks.

“People don’t usually associate video games with national security, but these platforms reach millions of Americans and collect vast amounts of personal data,” noted Aaron Bartnick, a former Biden administration official. He added that CFIUS would likely “examine the deal closely, even if they ultimately approve it.”

Political dynamics could also influence the process. The Trump administration maintained warm ties with Riyadh, and the Saudi sovereign fund is among the largest investors in Kushner’s firm, which manages about $5.4 billion and is known for smaller deals with companies like Shlomo Group and Dubizzle.

Silver Lake, managing roughly $110 billion in assets, has a long track record of landmark tech deals — including taking Dell Technologies private and later public again.

Strategic Shifts Ahead for EA

Should EA’s board reject the offer, it would owe a $1 billion breakup fee — mirrored by the investors if they fail to obtain regulatory clearance. Industry observers once speculated that media titans like Disney might enter the bidding.

As gaming habits evolve, traditional console and PC titles have lost ground to free-to-play hits like Fortnite and mobile-first experiences. Analysts believe Saudi investors aim to make EA’s biggest franchises free or freemium across mobile and streaming platforms, generating revenue through microtransactions and influencer partnerships. Netflix, for example, is already expanding its gaming presence on connected devices.

The transaction is expected to close by the second quarter of 2026. EA would remain headquartered in Redwood City, California, under the leadership of Andrew Wilson.

Source: New York Times