What began as an idea inside a spring brainstorming session between Silver Lake’s Egon Durban and Jared Kushner, son-in-law of U.S. President Donald Trump, has evolved into the world’s largest leveraged buyout — a $55 billion deal for Electronic Arts (EA) that now sits at the heart of Saudi Arabia’s Vision 2030.
Backed by the Public Investment Fund (PIF), the transaction grants the Saudi sovereign wealth fund a majority stake in EA, while Kushner’s private-equity firm Affinity Partners will own about 5 percent. According to LSEG data, PIF already held nearly 10 percent of EA before the acquisition. The buyout gives Silver Lake a stronger foothold in global gaming and entertainment, and provides Saudi Arabia with a cultural asset aligned with its plan to diversify beyond oil.
Kushner reportedly played a key role in brokering the deal. “I grew up playing EA games and now play them with my kids,” he said in the announcement. Silver Lake’s Durban called EA “a special company” and promised to expand its reach and innovation.
Saudi Arabia’s Gaming Power Play
Crown Prince Mohammed bin Salman, a self-proclaimed gaming enthusiast, has said he wants the kingdom to become “the global hub for games and esports” by 2030. Gaming has already generated double-digit annual returns for PIF, which is deploying an estimated $38 billion through its Savvy Games Group. PIF’s gaming investments include stakes in Activision Blizzard, Nintendo, and Take-Two Interactive.
“This isn’t just a spreadsheet deal,” said Joost van Dreunen, professor at NYU Stern. “It’s Saudi Arabia buying time, talent, and cultural clout in one shot. EA gives them the trophy IP house for Vision 2030.”
Expanding the Ecosystem
Beyond the buyout, EA will reportedly partner with Saudi Arabia’s new national esports tournament, while Qiddiya, a $1 trillion PIF “giga-project” near Riyadh, plans to host 10 million annual visitors in a gaming-focused entertainment district. The project aims to incubate 30 leading video-game studios by the end of the decade.
Financing the Megadeal
The consortium is investing $36 billion in equity, including PIF’s existing stake, and securing $20 billion in debt led by JPMorgan. EA shareholders will receive $210 per share in cash, a 25 percent premium over the pre-deal price on September 25.
While the merger allows 45 days for a higher bid, analysts see that as unlikely. “Matching it would require deep pockets and tolerance for scrutiny,” said van Dreunen. “Private equity would struggle to justify the leverage.”
Despite the deal’s scale, experts do not expect major regulatory barriers. “Given current Western-Saudi relations, reviews are likely to be box-ticking exercises rather than resistance,” noted David O’Hara of MKP Advisors.
EA’s integration into the Saudi-backed consortium underscores a pivotal shift — from Silicon Valley to Riyadh, gaming has become both a cultural export and a geopolitical tool in the kingdom’s quest to lead the global entertainment future.