EA to Go Private in $55 Billion Buyout, the Largest of Its Kind!

Monday, 29 September 2025 at 16:54

Electronic Arts is set to leave the public markets. The publisher best known for Battlefield and Madden NFL confirmed Monday it will be sold to a group of private investors for about $55 billion. That figure makes it the biggest leveraged buyout ever attempted, eclipsing the $45 billion TXU Energy takeover back in 2007.

The buyers are a mix that raised eyebrows: Saudi Arabia’s Public Investment Fund, Jared Kushner’s Affinity Partners, and Silver Lake. Financing is a blend of roughly $36 billion in cash (partly using PIF’s existing stake) plus $20 billion in debt backed by JPMorgan.

Shareholder Reaction

EA’s investors will get $210 a share, a 25% premium over the stock’s pre-deal price. Shares climbed about 5% after the announcement, trading just below the offer. That gap suggests traders aren’t entirely convinced the deal will clear every hurdle.

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Some analysts argue the offer undervalues EA. They point to Battlefield 6 coming soon and a sports lineup that generates steady, repeatable revenue from annual releases and in-game purchases. Benchmark estimates future titles could add $2 billion in bookings by 2028—money today’s buyers are trying to capture at a discount.

Risk of History Repeating

Mega-buyouts have a checkered history. TXU went bankrupt in 2014. Toys “R” Us collapsed a decade after its $6.6 billion deal. Hertz, taken private for nearly $15 billion in 2005, ended up in bankruptcy during the pandemic. The fear is obvious: too much debt, too little flexibility.

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This time, backers argue gaming is different. Franchises like FIFA, Madden and Apex Legends bring in consistent cash, and digital distribution is more predictable than toy shelves or car rentals. Still, $20 billion in fresh debt is a big gamble.

The Road Ahead

The takeover is expected to close by Q1 2027, assuming regulators sign off. EA will stay in Redwood City, California, with Andrew Wilson continuing as CEO. If either side walks away, the penalty is steep—$1 billion.

Key Points

EA going private in a $55 billion leveraged buyout, the largest ever.
Buyers: Saudi Arabia’s Public Investment Fund, Silver Lake, Jared Kushner’s Affinity Partners.
Shareholders: $210 per share, a 25% premium over pre-deal stock price.
Industry context: EA franchises like FIFA, Madden, and Battlefield provide recurring revenue streams.
Risks: High debt exposure; historical LBO failures like TXU, Toys “R” Us, and Hertz highlight potential pitfalls.

For now, EA is betting that going private gives it more room to invest in blockbuster franchises without the constant pressure of quarterly earnings. Whether that gamble pays off—or becomes another cautionary tale in buyout history—remains to be seen.

EA Games