Gaming mega-corp EA purchased in record deal worth $55bn 

• Video game giant to be purchased, 100%, and taken private, in a deal worth $55 billion
• ~$36 billion in cash and ~$20 billion in business loans used
• The cash comes from a consortium of three companies, principally funded by the Saudi Arabian state
• CEO Andrew Willson set to receive a significant payout and also remain in control
• Deal expected to be completed between April and June 2026

Custodians of the official Formula 1 game, the Need for Speed franchise, EA SPORTS titles and more, Electronic Arts, is set for an almost unprecedented (approximate) $55bn takeover.

That will place it second in the all-time video game-related deals, behind Microsoft’s $75bn Activision Blizzard purchase, although that was a merger and acquisition, as opposed to a take-private. Therefore, the EA move is billed as the “largest all-cash sponsor take-private investment in history.”

The Redwood City-based company will be purchased by a consortium consisting of the Public Investment Fund of Saudi Arabia (PIF, which is primarily funded by the Saudi Arabian state), private equity firm Silverlake and Miami-based investment outfit Affinity Partners.

The latter company was founded by Jared Kushner, who is the son-in-law of the president of the United States, Donald Trump. Its investment capital is believed to come primarily from Middle Eastern sources.

Financing details

The deal builds upon PIF’s existing 9.9% stake. The consortium will take 100% ownership of EA, and therefore, it will become a private company once more for the first time since 1989.

The company is currently listed on the Nasdaq stock exchange, where it is required to publish public earnings reports and host earnings calls.

Consequently, its next call, scheduled for 28th October, has been cancelled. It will still release the results for its second quarter as a press release.

Of the approximate $55 billion, ~$36 billion is in cash, but the remaining ~$20 billion is in the form of a loan from American bank JPMorgan Chase. Of that $20 billion, it is expected that around $18 billion will be used, with $2 billion kept as a backup.

Deal to complete in 2026

Such a large purchase is not the work of a moment. While the transaction has been approved by EA’s Board of Directors, it is not expected to close until Q1 of its 2027 financial year (Q1 FY27).

That is somewhere between 1st April and 30th June 2026, as EA’s financial year runs between 1st April (start of Q1) and 31st March the next year (end of Q4).

Existing CEO to stay in control

“This moment is a powerful recognition of their remarkable work,” said EA’s Chairman and CEO Andrew Wilson, who is set to remain at the helm.

“Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities.”

According to recent SEC filings, Wilson owns an estimated 140,000 shares in EA across two accounts. With the stockholders confirmed to receive $210 per share in cash, he stands to earn around $31m before fees, taxes and any additional vesting conditions.

Racing game legacy

EA creates, through a former Codemasters studio in Birmingham, UK, the yearly F1 video game.

It took over British racing game studio for $1.2bn in 2021, but has slowly reduced the outfit down to producing just the Formula 1 titles, with Project CARS 4 and F1 Mobile Racing cancelled, plus the World Rally Championship (WRC) development team axed.

It also has the Need for Speed, GRID and Burnout franchises. Need for Speed is believed to be paused while it pools resources for the upcoming Battlefield 6 first-person shooter. GRID and Burnout remain dormant.