Public Investment Fund of Saudi Arabia to Take Electronic Arts Inc. Private

The Public Investment Fund of Saudi Arabia is leading a consortium to take Electronic Arts Inc. private in a $55 billion all-cash leveraged buyout scheduled to close on August 4, 2026. The transaction, the largest leveraged buyout in history, includes a 93.4% stake for the PIF, with Silver Lake and Affinity Partners holding 5.5% and 1.1% respectively. The deal leaves Electronic Arts Inc. with $20 billion in debt from loans provided by JPMorgan Chase.

Electronic Arts Inc. announced in a July 30 SEC filing that it has obtained all necessary regulatory approvals, including clearance from the U.S. Federal Trade Commission and the European Commission of the European Union. The merger was originally targeted for June 30 but was delayed pending these approvals. The European Commission of the European Union stated the transaction would not raise competition concerns.

CEO Andrew Wilson will continue to lead the company, which will remain headquartered in Redwood City, California. Despite the leadership continuity, the acquisition has faced criticism from human rights organizations, the US Video Game union, and U.S. lawmakers. Opponents have raised concerns regarding Saudi Arabia's human rights record, the political connections of Affinity Partners CEO Jared Kushner, and the risk that the massive debt load could force cost-cutting measures, layoffs, or studio closures.