The gaming industry just witnessed its most seismic shift in decades. Electronic Arts Inc. shareholders approved the $55 billion sale of the company, a leading video-game publisher, in a deal led by Saudi Arabia’s Public Investment Fund. The December vote was decisive, with more than 201 million votes cast in support of the acquisition, versus just 1.9 million votes against, marking a historic moment for the publisher behind Battlefield, Madden, and The Sims.
The transaction represents the largest all-cash sponsor take-private investment in history, involving approximately $36 billion in equity investment and $20 billion of debt financing from the consortium that includes Silver Lake and Jared Kushner’s Affinity Partners. For context, this deal dwarfs the previous record holder, the 2007 TXU Energy buyout at 32 billion dollars.
What does this mean for gamers? EA will remain headquartered in Redwood City, California and continue to be led by Andrew Wilson as CEO, though the company will escape quarterly earnings pressures. However, concerns are mounting. U.S. Senators raised national security concerns over potential access to customer data, while the leveraged nature including significant debt could strain EA’s finances.
The deal now awaits regulatory approvals, including from U.S authorities, with closure targeted for Q1 of EA’s fiscal year 2027. As one of gaming’s last major independent publishers goes private, what does this consolidation wave mean for your favorite franchises?
