ElectronicArts is a major video game company, known for popular franchises like The Sims, Madden NFL, and Apex Legends. The company announced on September 29th, 2025, that it had made a definitive agreement to be obtained in the largest private equity buyout ever. For $55 billion, EAwill be acquired by the Public Investment Fund (the sovereign wealth fund of Saudi Arabia), Silver Lake, and Affinity Partners.

After the buyout was announced, this led to quick controversy among the community that enjoys the franchises under this corporation. The playerbase is uncertain of what could come of EA being owned by private investors, including influencers who base their content around franchises owned by the company.

“I think The Sims team is probably feeling just as scared as we are right now, and I know that they are going to be advocating for us internally as much as they can.” Kayla, “lilsimsie” Sims said on YouTube.

With so much conversation circulating not only in the gaming scene, but general news, a breakdown is much needed to help understand what is happening.

“PIF is pursuing its Vision 2030 strategy to diversify the economy beyond oil and grow its footprint in technology and entertainment.” Said Dr. Wil Fisackerly, OU’s Sports Business professor. “EA’s sports and gaming dominance fits this vision, though it’s a high-risk, high-reward move.”

In the press release EA posted, a statement was made on behalf of Silver Lake:

“This investment embodies Silver Lake’s mission to partner with exceptional management teams at the highest quality companies,” said Egon Durban, Co-CEO and Managing Partner of Silver Lake. “EA is a special company: a global leader in interactive entertainment, anchored by its premier sports franchise, with accelerating revenue growth and strong and scaling free cash flow.”

“The consortium buying EA [is] contributing about $36 billion in equity and cash, including PIF’s rolled 9.9% stake,” said Dr. Fisackerly. “The remaining $20 billion comes from JPMorgan Chase, with $18 billion drawn at closing and $2 billion left as a credit line for future needs. Shareholders still receive their full cash payout at close.”

This $20 billion in debt has led to speculation about how they will pay this off. Phrases like lay-offs, closing studios, micro-transactions and AI are being thrown around. How realistic is it that EA can pay off this debt?

“EA generates approximately $7.5 billion annually from franchises like Apex Legends, Battlefield, and EA Sports FC,” said Philip Alberstat, the managing director at DBD Investment Bank. “That flow of cash gives EA a real capacity to service the $20 billion in debt.”

While that does not guarantee that there will not be large changes made within the upcoming months, as EA will still do everything it can to maximize profits, it does provide some insight into the financial security of the company. This also helps solidify how EA will be able to give current shareholders a premium of $210 per share, which is about 25% above the unaffected price. Those who are not educated in stocks might wonder: is this fair?

“Yes [it is]. EA’s market cap was roughly $46 billion at $168.32 per share, with a recent high around $49 billion at $179.01,” said Dr. Fisackerly. “Paying a 25% premium to take a company private is significant and well within market norms, which explains why the stock is now trading close to the $210 deal price.”

As of Thursday, October 2nd, at 11:00 pm, the deal price was up to $201.50.

“Every share will be bought out at $210 in cash, aside from PIF’s existing stake that is rolling over. EA will shift from public to private ownership,” said Dr. Fisackerly. “The board has already approved the deal, but shareholders still get to vote before the deal is finalized in Q1 FY27. Rejection is unlikely given that the major investors would have already implicitly approved of the deal before EAwent public with the buyout.”

This will also end EA’s 36-year history as a publicly traded company. Going from public to private changes the transparency consumers will see regarding financial numbers. This means there will no longer be any shareholder oversight, as there are no shareholders.

In the Press release, EA does claim that it will remain headquartered in Redwood City, California, and continue to be led by Andrew Wilson as CEO. With EA no longer being required to submit quarterly reports, they could, in theory, focus on long-term bets and projects. If they choose to keep the same team, they could be allowed a new level of creative freedom.

“Not entirely,” said Dr. Fisackerly. “Shareholders clearly benefit from the premium. For consumers and employees, much depends on execution. EA could use this moment to reset its reputation and prioritize the player experience. Still, skepticism remains given Saudi involvement and political ties surrounding the transaction.”