EA Games has been acquired by a consortium led by Silver Lake Management, Saudi Arabia’s Public Investment Fund and Affinity Partners, in the largest merger and acquisition deal of 2025, with a transaction value of $55 billion.
On September 29, 2025, Electronic Arts (EA) confirmed the buyout at $210 per share in cash, positioning the acquisition at a massive $55 billion valuation. This figure stands at a 25% premium from where EA’s shares were trading prior to the deal leak. Backed by $20 billion in debt financing from JPMorgan Chase & Co., the acquisition surpasses the 2007 buyout of TXU, making it the biggest take-private deal ever recorded.
EA, headquartered in Redwood City, California, has experienced slowed growth following the pandemic boom. With shifting player trends favouring continuously updated free-to-play titles over premium games priced near $80, the company has faced repeated layoffs and increased pressure to innovate. Popular EA franchises like The Sims and EA Sports FC, however, remain major revenue drivers.
Private equity firms favour EA’s stronghold in sports gaming due to predictable revenue streams. Titles such as Madden NFL have consistently ranked among the top 10 sellers in the gaming industry. This strategic acquisition allows the company to focus on core development rather than quarterly earnings.
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Silver Lake’s involvement aligns with its ongoing interest in tech assets, including its stake in TikTok US. Saudi Arabia’s PIF continues expanding in digital entertainment, boosting its already notable stake in EA. Kushner's Affinity Partners, backed by Middle Eastern investors, adds further global influence to the acquisition deal.
The merger announcement comes just as EA is set to launch Battlefield 6 on October 10, 2025. The title has generated a positive early reception, contributing to the 15% rise in EA’s share price prior to this deal becoming public.
The $55 billion acquisition of EA Games by a global investor consortium marks a transformative moment in the gaming and private equity sectors. It reflects confidence in EA’s gaming franchises and underscores the rising global interest in interactive entertainment.
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Published on: Sep 30, 2025, 12:22 PM IST
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