Electronic Arts Goes Private in Historic $55B Deal Backed by PIF, Silver Lake, Affinity Partners

## Overview of Electronic Arts Electronic Arts (EA) is a pioneering American video game company headquartered in Redwood City, California. Founded in May 1982 by Trip Hawkins, EA has evolved into a global leader in digital interactive entertainment. The company is renowned for its diverse portfolio of critically acclaimed games and franchises, including **Battlefield**, **The Sims**, **Madden NFL**, and **Star Wars** titles. ### History and Key Achievements EA's journey began by promoting game developers as "software artists," focusing initially on external game development. Over time, the company shifted towards internal studios through strategic acquisitions, such as the formation of EA Canada from Distinctive Software in 1991. EA has successfully developed and published numerous iconic franchises across various genres, including sports, racing, and role-playing games. ### Current Status Currently, EA is on the cusp of a significant transformation. In September 2025, the company announced plans for a $55 billion leveraged buyout by the Saudi Arabia Public Investment Fund, Silver Lake, and Affinity Partners. This acquisition, pending regulatory approval, would mark the largest leveraged buyout to date. Despite facing financial challenges, with a 9.4% decline in net income in the fiscal year ending June 30, 2025, EA remains committed to its mission of inspiring the world to play. ### Notable Aspects EA is actively embracing artificial intelligence (AI) as a core component of its business strategy. The company views AI as crucial for future innovation, acknowledging both its potential benefits and challenges. EA also operates the EA App, a digital distribution platform for PC games, competing with Steam and the Epic Games Store. In addition to its gaming endeavors, EA emphasizes community engagement, inclusivity, and environmental sustainability. The company fosters a creative environment where diverse perspectives are valued, contributing to its global impact through interactive storytelling and innovative game experiences.

## Overview The Public Investment Fund (PIF) is the sovereign wealth fund of Saudi Arabia and ranks among the largest in the world, with estimated assets ranging from $620 billion to over $941 billion, depending on the reporting period and methodology[1][3]. Established in 1971, the PIF was created to invest government surpluses, primarily from oil revenues, into a diversified portfolio both domestically and internationally[1][3]. Its mission has evolved significantly in recent years, positioning itself as a central driver of Saudi Arabia’s ambitious economic transformation under the Saudi Vision 2030 initiative[2]. ## Activities and Strategy The PIF invests through equity, loans, and guarantees, channeling funds into large-scale government and private projects[4]. Domestically, it focuses on sectors such as telecoms, aerospace, energy, green technologies, and information technology, with a particular emphasis on housing finance, renewable energy, and tech-driven innovation[4]. Over 60% of its activities remain within Saudi Arabia, where it supports private conglomerates with close ties to the ruling family, while its international portfolio includes high-profile assets like the Premier League football club Newcastle United[1]. The PIF’s investments are designed to accelerate innovation, reinvent industries, create jobs, and grow the Saudi economy[2]. It has established 79 companies and claims to have created 500,000 direct and indirect jobs as of July 2022[2]. The fund is also behind several “giga-projects,” including NEOM (a futuristic smart city), ROSHN (urban development), the Red Sea Project (tourism), Qiddiya (entertainment and sports), and Diriyah (cultural heritage), all aimed at diversifying the economy and reducing reliance on oil[2]. ## Governance and Leadership The PIF is chaired by Crown Prince Mohammed bin Salman, Saudi Arabia’s de facto ruler since 2015, reflecting the fund’s central

Silver Lake is a leading global private equity firm founded in 1999, specializing in investments in technology, technology-enabled, and related growth industries. Headquartered in Menlo Park, California, with offices worldwide including New York, London, Hong Kong, and Singapore, Silver Lake manages over $110 billion in assets and oversees a portfolio generating approximately $260 billion in annual revenue while employing around 448,000 people[1][3][6]. The firm was established by experienced investors David Roux, Jim Davidson, Roger McNamee, and Glenn Hutchins, with Egon Durban and Greg Mondre currently serving as co-CEOs since 2019. Silver Lake emerged during the rise of private equity in Silicon Valley, distinguishing itself by focusing exclusively on large-scale technology investments, which has positioned it as a crucial player in the sector[1][3]. Silver Lake's investment strategies are diversified but technology-centric, operating through four main approaches: Silver Lake Partners (large-cap private equity investments), Silver Lake Alpine (structured equity and debt), Silver Lake Waterman (growth capital for later-stage companies), and Silver Lake Long Term Capital (long-term investments across geographies and industries)[3][5]. This multifaceted strategy supports their mission to act as a value-added partner to management teams, driving growth and operational excellence in portfolio companies. Notable achievements include high-profile acquisitions such as the purchase of Electronic Arts (EA) and investments in companies like Avago, Gartner, NASDAQ, and Flextronics. Silver Lake is renowned for its ability to scale and transform technology companies, leveraging deep industry expertise and strategic capital to generate superior financial returns[1][4]. Currently, Silver Lake remains a privately held firm with a strong presence in global technology markets. It continually raises large funds, such as the $20 billion Silver Lake Partners VI fund in 2024, reflecting investor confidence in its disciplined approach to technology-focused private equity[2][6]. The firm's innovative investment mode

Affinity Partners is an American private equity and investment firm founded in 2021 by Jared Kushner, former senior advisor to President Donald Trump and Trump's son-in-law. Headquartered in Miami, Florida, the firm focuses on investing in growth-stage companies, primarily American and Israeli firms, with a keen interest in sectors such as technology, consumer products, media, and telecommunications[1][2][4]. A distinctive aspect of Affinity Partners is its substantial funding from the Saudi Arabian government, particularly from the Public Investment Fund (PIF), which committed about $2 billion out of over $3 billion in total funding by the end of 2021. This investment was notable because some officials within the PIF initially opposed funding the firm, but Saudi ruler Mohammed bin Salman overruled these objections, underscoring the strategic importance attributed to the firm[1]. Affinity Partners aims to support companies expanding in regions such as India, Africa, the Middle East, and other parts of Asia, highlighting its role in fostering cross-border growth and investment. The firm engages in a range of investment activities, including buyouts and venture capital investments across seed, early, and later stages, with a portfolio emphasis on innovative and growth-oriented enterprises[2][4]. Despite its ambitious funding and investment strategy, by 2024 Affinity Partners had not returned profits to its investors, reflecting the long-term nature of private equity and venture capital investing as well as potential challenges in its portfolio performance[1]. With a relatively small team of approximately 20 employees, the firm combines the influence and network of its founder with significant sovereign wealth backing to position itself as a bridge between American, Israeli, and Middle Eastern markets. Its creation and funding have attracted considerable attention due to Kushner’s political background and the geopolitical implications of Saudi investment in U.S. and Israeli businesses[1][2].