Jared Kushner's Affinity Partners in Consortium for Historic $50 Billion Electronic Arts Buyout

Electronic Arts Inc., one of the world’s largest video game publishers, is reportedly in advanced discussions to be acquired and taken private in a landmark deal valued at approximately $50 billion.¹ According to a report from The Wall Street Journal, a consortium of investors including private equity firm Silver Lake, Saudi Arabia’s Public Investment Fund (PIF), and Affinity Partners, the firm founded by Jared Kushner, is leading the buyout.¹ If finalized, this leveraged buyout would be the largest in history, surpassing the 2007 acquisition of TXU Energy.²

The news, which broke on September 26, 2025, sent EA’s stock soaring by approximately 15%, reaching an all-time high.³ The potential acquisition signals a significant shift for a company that has been publicly traded since 1990 and highlights the growing appeal of video game publishers with stable, recurring revenue streams to private equity. The deal is said to be structured as a leveraged buyout, where the acquisition is financed largely through debt.² A formal announcement could come as soon as the week of September 29, 2025, though talks are not yet finalized and the involved parties have either declined to comment or have not responded to requests.¹

Deal Structure and Key Players

The consortium assembling this historic bid brings together significant financial power and strategic interests. Silver Lake, a technology-focused private equity giant with a history of investments in companies like Dell and Skype, would provide substantial expertise in managing large-scale tech acquisitions.¹ Saudi Arabia’s Public Investment Fund, which already owns an estimated 9% stake in Electronic Arts, is a central figure in the deal. The PIF’s involvement is consistent with its “Vision 2030” strategy to diversify the kingdom’s economy away from oil, with its gaming arm, Savvy Games Group, making aggressive moves in the industry.⁴ The inclusion of Jared Kushner’s Affinity Partners adds a notable dimension to the transaction, linking the deal to a firm established by the former White House senior advisor.

The valuation of roughly $50 billion represents a premium over EA’s market capitalization prior to the news, which stood at around $43 billion.² This premium reflects the consortium’s assessment of EA’s value as a private entity, free from the quarterly earnings pressures of the public market. The sheer size of the deal also indicates a rebound in large-cap mergers and acquisitions in 2025, driven by renewed confidence among corporate boards and investors.⁴ The ability to finance such a transaction in a higher interest rate environment suggests that liquidity is actively seeking out strong growth stories.

Strategic Rationale Behind the Acquisition

Analysts point to Electronic Arts’ portfolio of intellectual property as the primary driver of its attractiveness. The company’s annual sports titles, such as “EA Sports FC” (the successor to FIFA), “Madden NFL,” and “The Sims,” generate highly predictable revenue. As one business professional, Thomas Wagenberg, noted, these franchises function like “annuities that print cash every year,” justifying premium valuation multiples.⁴ This predictable income stream is particularly appealing for a leveraged buyout, as it provides confidence in the ability to service the significant debt required for the purchase.

For EA, transitioning to private ownership could offer strategic advantages. It would allow management to execute long-term plans for its “Games-as-a-Service” (GAAS) titles without the constant scrutiny of Wall Street. Rowland Cox, Head of Publishing at Force Multiplier Studios, suggested that a privately owned EA “could have a much longer view on its business than one that has to report every quarter to Wall Street. This could be great news for those working at EA on GAAS style ‘living games’.”⁴ This move aligns with a broader trend of companies in tech and media going private to escape market volatility and regulatory scrutiny.

Market Context and Industry Implications

The potential acquisition of Electronic Arts is part of a larger wave of consolidation within the gaming industry. This follows other massive transactions, most notably Microsoft’s acquisition of Activision Blizzard. The deal underscores the perception of major game publishers as holders of valuable cultural infrastructure and intellectual property.⁵ Joost van Dreunen, a lecturer at NYU Stern, commented that for Saudi Arabia’s PIF, the deal “would cement games as cultural infrastructure — assets as critical to global influence as sports or film.”⁴ The news had a ripple effect across the market, also lifting the shares of competitors like Take-Two Interactive.

The timing of the deal is noteworthy, as EA is on the cusp of launching several major titles. The upcoming release of “Battlefield 6” on October 10, 2025, is seen as a critical moment to revitalize that flagship franchise.⁴ The recent successful launch of “College Football 26” has also demonstrated the continued strength of EA’s sports division. From an investment perspective, the deal validates EA’s customer-centric strategy. Peter Fader, a professor and customer centricity expert, cited the news as confirmation of EA’s steady rise in market value and its strong, loyal customer base with high lifetime value.⁴

In conclusion, the reported $50 billion buyout of Electronic Arts by a consortium including Affinity Partners, Silver Lake, and the Saudi PIF represents a watershed moment for the video game industry. It highlights the immense financial value of established gaming IP and the strategic importance major nations are placing on the sector. If completed, the deal will not only create the largest leveraged buyout in history but also reshape the future of one of gaming’s most enduring companies, allowing it to operate away from the public spotlight. The coming weeks will be critical in determining whether these advanced talks culminate in a finalized agreement.