By Harshit, September 29, 2025 | Redwood City, California | 10:00 AM EDT
Gaming Giant’s Historic Takeover
Electronic Arts (EA), the iconic video game publisher behind franchises such as Madden NFL, Battlefield, and The Sims, is set to be acquired in a $52.5 billion deal, potentially making it the largest-ever private-equity-funded buyout in history.
The acquisition involves Silver Lake Partners, Saudi Arabia’s sovereign wealth fund PIF, and Affinity Partners, led by Jared Kushner, President Donald Trump’s son-in-law. EA shareholders will receive $210 per share, valuing the deal at roughly $55 billion when including debt. If finalized, the transaction will mark the end of EA’s 36-year history as a publicly traded company.
Strategic Moves by PIF
PIF, already EA’s largest insider stakeholder, will roll over its existing 9.9% stake. Analysts note that the sovereign wealth fund has been aggressively investing in gaming since 2022, acquiring minority stakes in major publishers and companies such as ESL, FACEIT, and Scopely.
Andrew Marok of Raymond James highlighted PIF’s ambitions: “The EA deal would represent the biggest such move to date by some distance.” PIF is also a minority investor in Nintendo, underscoring its long-term commitment to the gaming sector.
EA’s Public-to-Private Transition
Founded in 1982 by William “Trip” Hawkins, EA went public in 1989, with its shares closing the first day of trading at a split-adjusted 52 cents. Over the years, it has grown into a global gaming powerhouse with a loyal fan base. CEO Andrew Wilson, who has led EA since 2013, will continue to helm the company after the transition.
Kushner expressed enthusiasm for the acquisition: “Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future. I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games — and now enjoys them with his kids — I couldn’t be more excited about what’s ahead.”
Private Ownership Benefits
By going private, EA will be able to restructure operations without the pressure of quarterly public reporting, which sometimes compels companies to make short-term decisions at the expense of long-term innovation. The company has faced stagnant revenue over the past three fiscal years, hovering between $7.4 billion and $7.6 billion, despite maintaining a dedicated fan base.
EA’s major competitor, Activision Blizzard, was acquired by Microsoft for nearly $69 billion in 2023, reflecting the growing consolidation in the gaming industry. Meanwhile, competition from mobile and indie developers, including Epic Games, continues to intensify.
Past Acquisitions by Silver Lake
This is not Silver Lake’s first foray into high-profile tech takeovers. The firm previously acquired Skype in 2009 for $1.9 billion and Dell in 2013 for $24.9 billion, later returning Dell to public markets in 2018. Silver Lake also recently partnered with Oracle in a complex deal concerning U.S. oversight of TikTok.
Workforce and Operational Outlook
Though private buyouts often lead to cost-cutting measures, including layoffs, EA has not indicated plans for major staff reductions following the acquisition. After reducing its workforce by about 5% in 2024, EA ended March 2025 with 14,500 employees, later laying off several hundred in May.
EA’s headquarters will remain in Redwood City, California, and its leadership structure is expected to continue largely unchanged under private ownership.
Market Response and Next Steps
Shares of EA rose nearly 5% on Monday following the announcement, after a 15% jump on Friday when takeover rumors surfaced. The deal is expected to close in the first quarter of 2027, pending approval from EA shareholders.
If finalized, this acquisition will not only make history in private equity but also signal a new era for Electronic Arts, allowing the company to pursue long-term strategic goals without the scrutiny of public markets.
