By: Russ Spencer

In a stunning turn for the global technology and entertainment sectors, Electronic Arts (EA) — the California-based publisher behind gaming juggernauts like Madden NFL, EA Sports FC, The Sims, and Battlefield — has agreed to a buyout deal valued at $55 billion. The transaction, announced Monday, would make EA a privately held company, marking the largest buyout of a publicly traded firm in history, according to a report on Monday in The New York Times.

The deal is led by Saudi Arabia’s Public Investment Fund (PIF), alongside the private equity powerhouse Silver Lake and Affinity Partners, the firm managed by Jared Kushner, son-in-law to President Donald Trump. At $210 a share — a 25 percent premium above the company’s pre-leak stock price — the deal not only signals the deepening influence of Gulf capital in American entertainment but also places video games squarely at the intersection of geopolitics, finance, and national security.

As The New York Times report emphasized, the scale of the deal is unprecedented. Even without inflation adjustment, the $55 billion figure far eclipses the $32 billion acquisition of Texas utility TXU by a private equity consortium in 2007, once the largest leveraged buyout on record. To finance the purchase, the investor group has secured a $20 billion loan from JPMorgan Chase, signaling Wall Street’s confidence in both the profitability of gaming and the political influence of the consortium’s backers.

Electronic Arts, headquartered in Redwood City, California, will remain under the leadership of its longtime chief executive Andrew Wilson, who told reporters he was “energized about the future we are building.” EA will continue to be based in California, though ownership will shift dramatically toward international stakeholders.

The buyout comes at a pivotal moment for the gaming industry. Console and desktop games, once the industry’s backbone, have plateaued or declined. As The New York Times reported, players are flocking to mobile platforms, free-to-play models, and streaming services. Titles like Fortnite and casual smartphone games have captured younger generations, reshaping how the industry measures success.

For Saudi Arabia, the deal is part of a $38 billion pledge to dominate the gaming sector, spearheaded by the PIF’s Savvy Games Group. The kingdom, long reliant on oil revenues, has pivoted aggressively toward global entertainment investments. It has already launched LIV Golf to challenge the PGA Tour, acquired stakes in mixed martial arts through the Professional Fighters League, and poured billions into soccer clubs at home and abroad.

Video games, with their vast global reach and data-rich ecosystems, are the next frontier. The New York Times report highlighted that EA’s status as a “sports-gaming juggernaut” — with Madden NFL in American markets and EA Sports FC in international soccer — made it an irresistible target for the Saudis’ sports-entertainment strategy.

Perhaps the most politically charged aspect of the transaction is the involvement of Affinity Partners, Kushner’s $5.4 billion private equity fund, which was seeded heavily by the Saudi PIF. According to the information provided in The New York Times report, Affinity Partners has until now concentrated on small equity stakes in firms such as Israel’s Shlomo Group and Dubai-based Dubizzle, making its co-leadership in the EA deal a dramatic escalation of its ambitions.

Kushner’s proximity to the Trump White House is expected to complicate regulatory review. Critics already question whether his participation is a reward for political loyalties or a maneuver to cement Saudi influence in American technology sectors.

The deal must pass muster with the Committee on Foreign Investment in the United States (CFIUS), the interagency body that reviews international acquisitions for potential security risks. The committee has historically scrutinized deals involving telecommunications, energy, and defense — but rarely gaming.

Yet, as The New York Times reported, analysts argue that gaming platforms, with their millions of users and extensive data collection, could indeed pose national security risks. Aaron Bartnick, a Columbia University fellow and former U.S. official, told the paper that “these are platforms that reach millions of Americans and often collect a lot of personal data,” making the deal far from trivial.

David Hart, a Miami-based immigration attorney, and Wilfredo Allen, another legal expert cited by the Times, noted that there is “no precedent for quitting” on such non-traditional industries, suggesting CFIUS will be under pressure to chart new territory in evaluating foreign investment in gaming.

While Saudi Arabia and Kushner’s Affinity Partners draw headlines, Silver Lake provides the financial and operational backbone. With more than $110 billion under management, the firm is well-known for its history with Dell Technologies, which it took private in a landmark deal before later returning it to the public markets.

According to the information contained in The New York Times report, Silver Lake’s reputation for navigating complex technology transactions could prove vital in shepherding EA through regulatory hurdles and in restructuring the company for long-term growth under private ownership.

The agreement contains significant financial safeguards. Should EA’s board reject the buyout or if shareholders vote it down, the company must pay a $1 billion termination fee. Conversely, if the investors fail to secure regulatory approval or withdraw, they will owe EA an identical $1 billion.

Additionally, EA would owe fees if it entertains a better offer — a clause analysts noted could deter competing bids from media giants like Disney, which had once been floated as a potential acquirer.

Analysts told The New York Times that the Saudi strategy is clear: transform EA’s marquee franchises into global, accessible, and potentially free-to-play properties. This could include porting titles like Madden and FIFA successor EA Sports FC onto mobile devices and streaming television platforms. Revenue would come not from initial sales but from in-app purchases, subscription models, and cross-platform branding opportunities.

Such a strategy mirrors Netflix’s own push into gaming and could align EA with the global shift toward entertainment-as-service, rather than entertainment-as-product.

The deal is not occurring in a vacuum. Saudi Arabia’s PIF has been criticized for what activists describe as “sportswashing,” leveraging high-profile investments in sports and entertainment to soften global criticism of its human rights record. The New York Times has repeatedly emphasized the kingdom’s dual ambitions: to diversify economically and to rebrand itself diplomatically.

By acquiring one of the world’s most iconic gaming publishers, Riyadh positions itself at the heart of a cultural industry that reaches hundreds of millions worldwide. Critics, however, warn that the deal risks ceding significant American soft power to foreign actors whose interests may not align with Washington’s.

The timing of the deal under the Trump administration further complicates the picture. The New York Times report observed that Trump’s White House has often integrated political calculations into merger reviews. The administration’s warm relationship with Saudi Arabia, coupled with its familial ties to Kushner’s firm, could smooth approval but may also spark accusations of favoritism.

Democratic lawmakers are likely to press CFIUS for a thorough review. Some have previously called for limits on Saudi ownership of sports and entertainment platforms, citing both security risks and ethical concerns.

For EA, the deal represents both opportunity and peril. As The New York Times report noted, the company has struggled to adapt to evolving gamer preferences, facing competition from free-to-play juggernauts and indie developers alike. Going private may grant the firm flexibility to take risks without quarterly shareholder pressure.

But the association with Saudi capital could also alienate parts of EA’s player base, particularly in Western markets where human rights concerns loom large. The reputational costs, analysts warn, could offset financial gains if not managed carefully.

The deal is slated to close in the second quarter of 2026, provided regulators approve. Until then, EA will operate as usual, though speculation is rife about how its portfolio may be reshaped.

For Saudi Arabia, the acquisition marks another step in its bid to become a global entertainment superpower. For Kushner, it is a chance to prove Affinity Partners can operate at the highest levels of global finance. For Silver Lake, it is another notch in its belt of historic technology deals.

And for Washington, it is a test: whether the United States is willing to let one of its most influential cultural exports fall under the financial orbit of Riyadh.

As The New York Times report observed, the Electronic Arts buyout “is not just about video games. It is about who gets to shape the cultural and technological platforms of the future.”