Saudi Arabia's sovereign wealth fund buys EA Sports, backed by Donald Trump's son-in-law, Jared Kushner.

The consortium led by Saudi Arabia’s Public Investment Fund (PIF), with participation from Silver Lake and Affinity Partners (Jared Kushner’s firm), completed the acquisition of Electronic Arts (EA) for approximately $55 billion on August 4, 2026. The deal, announced on September 29, 2025, takes EA private, delists its shares from the Nasdaq, and represents the largest-ever leveraged buyout (LBO) and the second-largest M&A transaction in the video game sector (trailing only Microsoft’s acquisition of Activision Blizzard).

Shareholders received $210 in cash per share, a significant premium over the stock price prior to initial reports of the deal. The PIF now holds approximately 93.4% of the company, with Silver Lake holding 5.5% and Affinity Partners 1.1%. The Saudi sovereign wealth fund was already a minority shareholder (holding about 9.9%) and rolled over that position into the transaction.

Financial structure and leverage

The transaction was funded with approximately $36 billion in equity (including the rollover of the PIF’s pre-existing stake) and about $20 billion in debt arranged by JPMorgan Chase. EA is assuming the bulk of this debt, pushing leverage to historically high levels for the company (pro forma around 6–7x EBITDA, depending on the metrics presented to debt investors).

Analysts and industry observers warn of the impact of this debt load: annual interest payments could approach $1.5 billion to $1.8 billion, putting pressure on cash flow generation. The company has announced plans for cost efficiencies (including approximately $700 million in annual savings cited in reports) and a greater focus on established franchises. CEO Andrew Wilson remains in his position. The consortium highlights the potential of artificial intelligence to reduce development costs and accelerate innovation.

Saudi Strategy and Vision 2030

The deal aligns with Saudi Arabia’s diversification strategy (Vision 2030), which prioritizes entertainment, sports, and gaming. The PIF has been investing aggressively in the sector through Savvy Games Group and stakes in Nintendo, Take-Two, Capcom, Nexon, SNK, and others. EA brings a portfolio of high-value IP and recurring cash flow: EA Sports FC (formerly FIFA), Madden NFL, Battlefield, The Sims, Need for Speed, and Apex Legends, among others. For the PIF, this represents a long-term strategic asset, aligned with the goal of positioning the Kingdom as a global hub for gaming and esports.