Saudi-backed investors just pulled off the largest leveraged buyout in history, taking Electronic Arts private and raising new alarms about foreign influence over America’s digital industries.
Story Snapshot
- Electronic Arts (EA) is going private in a $55 billion deal led by Saudi Arabia’s Public Investment Fund, Silver Lake, and Affinity Partners.
- This is the largest leveraged buyout ever, surpassing all previous records in U.S. business history.
- Saudi involvement and private equity control spark concerns about foreign influence and U.S. industry independence.
- EA’s shareholders receive a 25% cash premium as the company leaves public stock exchanges.
Record-Setting Buyout Signals Shift in U.S. Business Power
Electronic Arts, a California-based gaming giant behind franchises like Battlefield and Madden NFL, has agreed to a $55 billion leveraged buyout, the largest in corporate history. The deal, finalized on September 29, 2025, sees EA delisted from public markets as it is acquired by a consortium led by Saudi Arabia’s Public Investment Fund (PIF), along with private equity groups Silver Lake and Affinity Partners, the latter founded by Jared Kushner. The buyout delivers a 25% premium to shareholders and is financed in part by a $20 billion loan from JPMorgan.
Industry analysts note that this buyout far exceeds the previous record set by TXU Energy’s $45 billion deal in 2007. EA’s shareholders will receive $210 per share in cash, with the company’s CEO, Andrew Wilson, expected to remain in charge of daily operations. The timing coincides with major EA product releases such as Battlefield 6 and FC 26, as well as ongoing challenges like the recent loss of the FIFA license and downsizing at BioWare. The gaming sector has witnessed a wave of consolidation, with firms like Activision Blizzard and Zynga already absorbed by larger entities.
Foreign Investment Raises Questions About U.S. Industry Independence
The Saudi-led investor group now gains significant control over one of America’s most prominent entertainment companies. With the PIF’s heavy financial leverage, concerns are growing among industry watchers and policymakers about the extent of foreign government influence in key U.S. technology and entertainment assets. Private equity partners, including Silver Lake and Kushner’s Affinity Partners, are seeking returns from what they see as a major global entertainment asset, but the deal underscores the ongoing trend of U.S. business icons being transferred to private—and in this case, foreign—hands.
EA’s executive team is expected to stay in place, but the consortium’s influence could drive changes in strategy, priorities, and corporate governance. Some experts warn that the buyout could limit transparency and public oversight, as private companies are not subject to the same disclosure requirements as publicly traded firms. This shift also means that average American investors lose access to a prominent domestic company, further reducing the number of U.S.-listed gaming firms.
What Does Private Ownership Mean for Gamers and Workers?
For EA’s employees and millions of gamers, the buyout introduces uncertainty about the future. While some optimists believe private ownership may allow EA to innovate without the pressures of quarterly earnings, others worry about the risk of cost-cutting, restructuring, or a shift away from the creative freedom that has driven the company’s success. Industry consolidation, accelerated by sovereign wealth and private equity, threatens to reduce competition, potentially stifling innovation and limiting choices for consumers.
Shareholders are reaping immediate rewards from the buyout premium, but the long-term effects on the gaming landscape remain unclear. Gamers and employees alike may face a period of adjustment as the new owners set their agenda. The broader trend of foreign investment in U.S. tech and entertainment is likely to spark further debate among lawmakers, especially those concerned about national interests and the preservation of American industry leadership.
Largest Deal Sets Precedent for Future U.S. Industry Buyouts
This $55 billion deal sets a new benchmark for leveraged buyouts in the United States, signaling that sovereign wealth and private equity players are more influential than ever in shaping the future of American business. The precedent may prompt further acquisitions in the gaming and tech sectors, with fewer companies left for average investors and American oversight. For conservatives focused on protecting U.S. industry independence and resisting foreign overreach, the outcome of this buyout will be watched closely as a bellwether for the future.
As the dust settles, questions linger about how much control American companies and workers will retain as global investors and foreign governments increase their stakes in the industries that shape our culture and economy.
Sources:
Electronic Arts going private in major $55B buyout deal from investor group
EA stock price: Biggest leveraged buyout ever, Saudi PIF Kushner
