Leveraged buyouts are built for predictability, while video games are built on risk. Success depends on long development cycles and hits that cannot be engineered on a spreadsheet. EA’s $55 billion take-private deal brings these two worlds into direct conflict, pairing one of the most capital-intensive creative industries with one of the most financially rigid ownership structures. With $20 billion of debt layered on top, the transaction raises a central question: can a company known for long-term franchise building innovate under the constant pressure of debt servicing? The answer will determine whether this deal becomes a landmark success or a cautionary tale.

The acquisition of Electronic Arts (EA), announced on September 29th 2025, is the largest leveraged buyout (LBO) in entertainment history. The deal, which is expected to close mid-2026, is driven by a consortium of investors led by Saudi Arabia’s Public Investment Fund (PIF) alongside Silver Lake and Affinity Partners. This all-cash transaction will see shareholders receiving $210 per share, valuing the company at $55 billion. This implies a premium of 25% over its current market cap of $51.12 billion. Once the deal is finalized, EA will no longer be traded publicly and its shares will be taken off the stock market. For shareholders, the deal offers a clean exit at an attractive valuation. For the buyers, it is a high-conviction wager on the long-term economics of gaming and intellectual property (IP).