Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners closed their $55 billion acquisition of Electronic Arts on Thursday, removing the gaming publisher from public markets in the largest software entertainment transaction on record. The consortium paid $155 per share in cash, a 35% premium to EA's undisturbed trading price before deal rumors surfaced in November. Riyadh now controls the publisher behind FIFA, Madden, Apex Legends, and The Sims franchise.
The transaction removes $18 billion in annual revenue and $2.1 billion in trailing EBITDA from public scrutiny. EA had been publicly traded since 1989, surviving three prior takeover approaches including Comcast's $11 billion offer in 2008. Silver Lake contributed approximately $8 billion in equity, Affinity Partners $4 billion, with PIF providing the balance and structuring $28 billion in acquisition debt through JPMorgan and Goldman Sachs. The consortium assumed $1.2 billion in existing EA debt. PIF gains operational control through board majority and CEO appointment rights.
The timing matters because EA's most valuable asset—its FIFA successor franchise, rebranded as EA Sports FC—launches its third annual iteration in September 2025. The 2024 edition sold 19.4 million copies, generating $1.6 billion in revenue without FIFA licensing fees that previously cost $300 million annually. PIF now owns the revenue upside as EA negotiates individual club and league rights without FIFA's global umbrella. The Saudi fund also acquires EA's live-service infrastructure, which delivered 68% of total revenue in fiscal 2024 through ultimate team modes and seasonal battle passes. That recurring revenue model converts at 47% EBITDA margins, double the industry average for premium game sales.
The deal accelerates PIF's gaming vertical buildout. The fund already held 8.1% of Nintendo, 5.3% of Capcom, and 96% of Savvy Games Group, which owns ESR and FACEIT tournament platforms. Adding EA's 700 million registered players and 37 owned studios creates the infrastructure for Saudi Arabia's stated goal of becoming the global gaming hub by 2030. Silver Lake brings operational expertise from prior gaming investments in Endeavor Group and SBG Sports Software, while Affinity Partners—led by Jared Kushner—contributes Gulf sovereign wealth relationships and regulatory navigation.
Allocators should track three events. First, EA's next earnings release—now private—will show whether Ultimate Team revenue holds without quarterly guidance discipline, expected late May 2025. Second, PIF's next annual disclosure in January 2026 will reveal whether EA remains a standalone subsidiary or merges with Savvy Games Group. Third, watch for EA Sports FC club licensing renewals in July 2025 when 14 Premier League and 8 La Liga contracts expire. PIF controls whether EA pays market rates or leverages Saudi sovereign relationships for favorable terms.
The $155 per share close price valued EA at 26.2x forward earnings, a 4.8x premium to Activision's 21.4x multiple when Microsoft closed that $69 billion deal in October 2023. The difference reflects EA's live-service concentration and absence of antitrust scrutiny that delayed the Microsoft transaction by 21 months. PIF cleared regulatory review in 118 days.