EA Sold to Jared Kushner-Backed Consortium in $50bn Deal—What This Means to Players and Their Favorite Games Explained

Video game publisher Electronic Arts has agreed to be taken private in a $50 billion (£39.5 billion) deal involving private equity firm Silver Lake, Jared Kushner's Affinity Partners, and Saudi Arabia's Public Investment Fund.

As reported first by The Wall Street Journal, the deal, one of the largest leveraged buyouts in history, could be announced as early as Monday if no last-minute obstacles arise. EA, known for popular franchises including EA Sports FC, Madden NFL, and Battlefield, has approximately 700 million user accounts worldwide.

The Consortium Behind the Deal

The group of investors leading the acquisition includes Silver Lake, a major technology-focused private equity firm, Kushner's Affinity Partners, and Saudi Arabia's sovereign wealth fund, the Public Investment Fund.

Affinity Partners was founded by Jared Kushner in 2021 after he left the Trump administration, and it is backed by Middle Eastern investors. PIF already counts EA among its largest shareholders and has a history of investments in gaming and technology, including its Savvy Games unit's $3.5 billion (£2.6 billion) acquisition of Pokémon Go.

Timing of the Takeover

Industry insiders suggest the timing of the EA deal is strategic. Markets are currently at record highs, creating strong demand for financing.

JPMorgan is arranging a debt package worth more than $20 billion (£14.9 billion) to support the transaction.

A source familiar with the matter said the deal is 'perfectly timed', allowing the consortium to capitalise on investor interest.

EA has reported almost no year-on-year revenue growth in its latest quarterly results, highlighting the need for new strategies to boost profits.

Implications for EA Games and Players

EA's vast portfolio of franchises may see changes under private ownership. Investors could use artificial intelligence tools to automate aspects of game development, potentially reducing production costs for blockbuster titles.

EA has also been expanding its live services and free-to-play game offerings, which now represent nearly three-quarters of total net bookings. The consortium may prioritise these revenue streams while exploring ways to maintain popular console games, including EA Sports FC and Madden NFL.

Gamers may notice changes to monetisation models, development timelines, or subscription-based features as private equity owners implement cost-saving measures.

Industry Reactions and Market Response

The $50 billion (£37 billion) take-private deal has already prompted reactions from both investors and gamers.

EA shares rose approximately 15% to $192.83 (£143) following reports of the acquisition, bringing the company's market value close to $48 billion (£35 billion).

Analysts note that this transaction exceeds the 2007 $45 billion (£33.5 billion) buyout of Texas utility group TXU and follows major gaming industry acquisitions such as Activision Blizzard's $75 billion (£55 billion) sale to Microsoft.

Some commentators have raised concerns over foreign investment influence in American gaming, given PIF's significant involvement.

Next Steps for EA and Players

The acquisition is pending regulatory approval and final confirmation from all parties. Investors are already signalling interest in providing debt financing, enabling JPMorgan to begin building the order book.

Gamers should monitor EA accounts, subscriptions, and any announcements regarding changes to game services, pricing, or live features.

The private takeover represents a major shift for one of the world's largest independent video game publishers outside China and could reshape the industry landscape.