Trump’s Son-In-Law, Saudi Arabia Buying Electronic Arts In Record $55B Deal

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Electronic Arts, the company that publishes popular games like Madden, Battlefield, The Sims, and the Star Wars series, is set to become a private company in a significant $55 billion agreement.

The group acquiring the company consists of Affinity Partners, the private equity firm led by Jared Kushner, the Public Investment Fund of Saudi Arabia (PIF), and Silver Lake.

The Biggest Buyout Ever

This agreement prices EA at $210 per share, which is roughly 25% higher than its recent stock price. This establishes it as the biggest leveraged buyout ever recorded. More details are available on our website. It’s a significant moment for the company.

Investors will fund the purchase with a $20 billion loan from JPMorgan Chase. The agreement is anticipated to be finalized in 2026, assuming it receives approval from shareholders and regulators. Should the company’s board decide to cancel the deal, they would be required to pay investors a $1 billion penalty fee. This is known as a breakup fee.

Who’s Leading The Buyout?

The Public Investment Fund of Saudi Arabia already owns roughly 10% of Electronic Arts (EA) and is rapidly growing its presence in the gaming industry. This includes establishing Savvy Games Group and organizing the $70 million Esports World Cup.

Jared Kushner’s Affinity Partners leverages his political connections. Kushner, who is married to Donald Trump’s daughter, has established strong relationships with Saudi Arabia, and they have pledged billions of dollars to his company.

Silver Lake is a major private equity firm specializing in technology investments. They’ve been involved in some very large deals, such as the one with Dell.

Why Saudi Arabia Wants EA

Saudi Arabia is working to reduce its reliance on oil and believes gaming will be a major area for growth worldwide. EA has incredibly popular sports titles like Madden and FIFA (which is now known as EA Sports FC), making them a leader in sports gaming. Plus, hugely successful series like Battlefield and Star Wars Jedi help them appeal to a wide audience.

According to analysts reporting in the NY Times, the new ownership could lead to more Electronic Arts (EA) games becoming free-to-play. This would likely include purchases within the game, as well as expanding into mobile platforms and game streaming, all with the goal of reaching a larger global audience.

National Security Concerns

The Committee on Foreign Investment in the U.S. will be examining the acquisition. Certain members of Congress have already expressed worries regarding Saudi Arabia owning entertainment services that gather significant user information. This raises potential privacy and national security issues.

Despite this, many experts believe the agreement will be approved considering the Trump family’s connections to Riyadh. Jared Kushner, who is married to Ivanka Trump, is also a key figure. Observers anticipate a smooth process due to these relationships.

What’s Next For EA

As a huge fan of what EA does, I was really interested to hear about the recent news. EA’s CEO, Andrew Wilson, is staying on, and he actually put out a statement saying he’s proud of the deal and how it recognizes the talent of their creative teams. He went on to say, and this is a direct quote, “I am more energized than ever about the future we are building.” It’s cool to see leadership so optimistic, and I’m excited to see what EA does next!

The company will remain headquartered in Redwood City, California; however, with its new private ownership, you can anticipate significant changes in the creation, distribution, and pricing of EA games.

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2025-09-29 19:32