I wrote for Naavik about EA’s $55B leveraged buyout led by Saudi Arabia’s Public Investment Fund. Read the full article here.
Why I wrote about this
It’s big! Also, it’s the largest leveraged buyout in history; and with it, one of the last major public game publishers is going private.
The gist of it
Electronic Arts is being taken private in a $55B deal led by Saudi Arabia’s PIF, alongside Silver Lake and Affinity Partners. The consortium is paying $36B in cash and loading $20B of debt onto EA’s balance sheet, ending its 30-year run as a public company at roughly a 25% premium.
EA today is a well-oiled sports machine. More than half of revenue comes from sports, with EA Sports FC estimated at $2B–$3B annually and Madden surpassing $1B in yearly bookings. But overall revenue has hovered around $7.5B for years, growth has stalled, and mobile bets like Glu and Playdemic failed to create a breakout second pillar.
For Saudi Arabia, this is empire-building under Vision 2030. With $900B under management and $38B earmarked for gaming, the PIF has already acquired Scopely, Niantic, and ESL FACEIT. EA adds a crown jewel: global sports gaming at scale.
This isn’t a quick private equity flip: it’s long-term capital buying prestige, influence, and a strategic foothold in global entertainment.
Key takeaways
- The deal is technically a $55B leveraged buyout: $36B equity, $20B debt, ~25% premium.
- EA’s sports franchises (EA FC, Madden) drive the bulk of profits; growth has plateaued.
- EA wasn’t distressed: it was stable, cash-generative, and arguably peaked.
- The $20B debt is significant but serviceable given ~$2B+ annual free cash flow.
- Given the Saudi backing, this is a leveraged buyout in structure, but not in spirit. For the PIF, EA is as much soft power and prestige as it is financial investment.
- One of the last major public publishers is now private, reducing industry transparency.