Usually, investors are looking at promising initial public offerings (IPOs), the process by which private companies become publicly traded on the stock market. In the case of video gaming giant Electronic Arts Inc. (NASDAQ: EA), the opposite is happening.
The prolific videogame publisher will be taken private at an EA stock price of $210 per share, priced on September 25, giving the deal a total buyout value of $55 billion. President Trump’s son‑in‑law, Jared Kushner, appears to be the intermediary. Specifically, between Kushner’s own Affinity Partners, private equity firm Silver Lake and Saudi Arabia’s Public Investment Fund (PIF).
EA shareholders will gain a 25% price premium as the stock price was $168.32 at market close on September 25. The deal makes for the largest leveraged buyout (LBO) on record, expected to conclude in fiscal Q1 2027 (ending June 2026).
The question is, what is the implication of this record LBO for EA as a video gaming publisher, and could we see similar moves in other publicly traded companies?
Why Saudi Arabia?
For decades, the United States nourished a strategic alliance with Saudi Arabia as a key cornerstone in maintaining petrodollar dominance. But more importantly, this has been carried out in lockstep with Israeli interests. Although the Kingdom doesn’t formally recognize Israel, this is largely a public‑facing technicality.
Behind the scenes, the Israeli‑aligned U.S. has been facilitating tight cooperation and coordination between the Kingdom and Israel. We covered the pinnacle of this partnership when President Trump visited Saudi Arabia in May, bringing the CEOs of all major tech and military companies. In an unprecedented public‑private partnership (PPP) push, President Trump delivered $600 billion worth of investing commitments, ranging from AI, manufacturing and healthcare to energy and military.
Just as is the case with EA’s $55 billion acquisition, Saudi’s Public Investment Fund (PIF) played a key role, holding approximately $925 billion assets under management and having exposure across 220 companies.
The long‑term goal is to have a regional powerhouse against another regional power – Iran. Or to put it differently:
- •The U.S. provides the Kingdom the technical know‑how in upgrading and maintaining the country, alongside security. Case in point, early in President Trump’s first term, the Kingdom committed to $110 billion arms purchases with an extra $350 billion over 10 years. This May, another $142 billion was added.
- •By doing this, the U.S. not only boosts its domestic manufacturing base, but puts the Kingdom in a state of dependency. In turn, this dependency serves Israel as a counterweight against Iran.
- •By supporting both Israel and Saudi Arabia, the U.S. extends its hegemonic power over the Strait of Hormuz, one of the most important global oil transportation chokepoints.
- •For continuing to secure Saudi Arabia, the Kingdom is incentivized to deploy its vast accumulated capital for various Israeli‑aligned interests across the globe.
Alongside his son‑in‑law, Jared Kushner, President Trump has routinely demonstrated his allegiance with Israel, even to the point of expending his political capital domestically. As his son‑in‑law, Kushner also has a close and influential relationship with Crown Prince Mohammed bin Salman, the de facto ruler of the Kingdom.
In broader terms, EA’s acquisition should be understood as another step in media consolidation, spearheaded by Israeli‑aligned Larry Ellison. Although Ellison is also a media magnate, through his dominant stake in Paramount Skydance conglomerate and other ventures, he is also pushing the emerging AI‑powered military industrial complex alongside the Stargate project.
Together with Israeli‑aligned Rupert Murdoch and Andreessen Horowitz, the founder of a16z Capital management, Ellison also recently acquired TikTok’s US business. Interestingly, just as Silver Lake is facilitating the acquisition of EA, the equity firm also does the same for TikTok, together with Abu Dhabi‑based investment firm MGX and Ellison’s Oracle.
“This investment embodies Silver Lake’s mission to partner with exceptional management teams at the highest quality companies. 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.”
Silver Lake Co‑CEO Egon Durban
Is EA Likely to Prosper Under Saudi Capital?
In the last earnings report ending June, EA reported $1.3 billion in net bookings, as the total value of products and services sold digitally or physically. For fiscal year 2026, the company expects up to $8 billion in total net bookings. For the quarter, EA delivered $1.67 billion revenue, owing largely to live services at $1.38 billion.
However, EA’s net income dropped from a year‑ago quarter of $280 million to $201 million. Although EA’s gaming portfolio spans the entire range of genres, the bulk of revenue came from EA SPORTS, specifically EA Sports FC 25 and the American Football franchise.
After the release of Dragon Age: The Veilguard, EA revealed its severe ideological capture problem, in which fringe ideology is pushed on the consumer. As a result, EA reported the game earned nearly 50 % less than they had expected. In addition to the ideological capture problem, it appears that EA has issues monetizing non‑live service games.
Not only do some of Veilguard’s problems stem from its monetization attempt during development, but Anthem, also developed by EA’s BioWare, is scheduled to shut down in early 2026. With the Saudi buyout and the absence of shareholder pressure, it is likely there will be less emphasis on shoehorning monetization schemes.
Likewise, the Saudi capital is likely to reduce the problem of EA’s ideological capture, as the video game publisher focuses more on technical prowess. Highly anticipated Battlefield 6, designed as a live service, is the first major title to demonstrate how EA’s new ownership could reorient priorities.
If the Saudi capital truly shifts EA away from ideological capture and unstable monetization, the publisher may return to its roots: delivering technically polished, large‑scale multiplayer experiences. Success here would not only validate the buyout but also set the tone for how sovereign‑backed gaming companies might compete on the global stage.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.All stock prices were quoted at the time of writing.