Electronic Arts said Monday that it has agreed to be acquired by the Public Investment Fund of Saudi Arabia, Silver Lake and Affinity Partners in an all-cash deal worth $55 billion.
Shareholders of the company will receive $210 per share in cash.
EA's stock climbed 4.5% on Monday. Shares gained about 15% on Friday, closing at $193.35, after The Wall Street Journal reported that the company was nearing a deal to go private.
PIF is rolling over its existing 9.9% stake in the company and will, by far, be the majority investor in the new structure, people close to the deal told CNBC's David Faber.
The acquisition is the latest in a "recent gaming spree" by the Saudi PIF, which has been active in gaming since 2022, analysts at Raymond James wrote in a note early Monday.
The fund's gaming arm, Savvy Gaming, has taken stakes in public video gaming publishers and bought ESL, FACEIT, and Scopely, the analysts noted, but the deal for EA is "the biggest such move to date by some distance."
Affinity CEO Jared Kushner, who is President Donald Trump's son-in-law, touted EA's "bold vision for the future" in a release announcing the deal.
"I've admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games - and now enjoys them with his kids - I couldn't be more excited about what's ahead," Kushner said in a statement.
The group of companies is making a total $36 billion equity investment, with $20 billion in debt financing from JPMorgan, according to the release. JPMorgan was brought in a couple of weeks ago, people familiar with the deal told Faber.
The take-private deal for the maker of popular games like Battlefield, The Sims and the Madden series of NFL games, among others, is set to be the largest leveraged buyout in Wall Street history.
In a note to employees, EA CEO Andrew Wilson said he is "excited to continue as CEO."
"Our new partners bring deep experience across sports, gaming, and entertainment," he wrote. "They are committed with conviction to EA – they believe in our people, our leadership, and the long-term vision we are now building together."
The deal is expected to close in the first quarter of fiscal 2027.
There is a 45-day window to allow for other proposals, people familiar with the terms of the deal told Faber. The deal talks started in the spring, the people said.
Silver Lake, which is led by co-CEOs Egon Durban and Greg Mondre, is also one of the key investors in Trump's push to get TikTok under U.S. control.
CNBC has reached out to EA for further comment and information on the deal.
