The tech world is buzzing with news that Electronic Arts (EA), the Redwood City-based gaming powerhouse, might soon be taken private in a massive $55 billion deal. This groundbreaking acquisition involves Saudi Arabia’s Public Investment Fund, Jared Kushner’s Affinity Partners, and private equity firm Silver Lake.

The deal, which would be the largest private equity-funded buyout in history, offers existing shareholders a 25% premium on their current stock value, translating to $210 per share. EA, known for iconic game franchises like Battlefield, Madden NFL, and Bejeweled, has been a staple in the gaming industry for 36 years.

Kushner, who launched his Miami-based investment firm in 2021, expressed excitement about the potential acquisition. The Saudi government’s sovereign wealth fund has already invested $2 billion in Affinity Partners, making them a significant player in this deal.

Interestingly, the Public Investment Fund (PIF) was already EA’s largest private stakeholder, owning 9.9% of the company. This acquisition comes at a strategic time when gaming consoles are facing challenges from the rising mobile gaming market. Analysts suggest the PIF might be looking to expand EA’s popular titles into mobile and streaming platforms.

The move aligns with broader Saudi efforts to increase global sports involvement, following investments in ventures like LIV Golf and various soccer teams. Despite the acquisition, EA is expected to maintain its Redwood City headquarters, with CEO Andrew Wilson continuing to lead the company.

The deal still requires approval from EA shareholders, the company’s board, and the Committee on Foreign Investment in the United States. If approved, the transaction is anticipated to close in 2027, potentially reshaping the gaming industry’s landscape.

As tech and gaming enthusiasts, we’ll be watching how this high-profile acquisition unfolds and what it means for the future of interactive entertainment.