Electronic Arts Exits Nasdaq Amid $55 Billion Takeover by PIF
Electronic Arts’ stock trading came to a halt before the market opened on Wednesday, marking the completion of a $55 billion take-private deal that places control of the company, known for titles like EA Sports FC, Apex Legends, and Madden NFL, in the hands of Saudi Arabia’s Public Investment Fund (PIF).
According to a Form 8-K filed with the U.S. Securities and Exchange Commission, Oak-Eagle MergerCo, a consortium formed by PIF, Silver Lake, and Affinity Partners, merged with Electronic Arts on August 4, resulting in EA becoming a wholly owned subsidiary of Oak-Eagle AcquireCo. Each share was converted to a cash value of $210, totaling around $55 billion. Following the close of trading on Tuesday, Nasdaq suspended the stock and has submitted a Form 25 to delist it. EA plans to file a Form 15 to terminate its reporting obligations around August 14, as noted in an amended Schedule 13D filed by PIF.
Kirkland & Ellis, representing the consortium, highlighted this transaction as the largest take-private investment ever recorded.
Shareholders approved the deal on December 22, 2025. The $210 per share price represented a 24.8% premium over EA’s closing price on September 25, 2025, just before rumors of a sale began circulating, as detailed in EA’s proxy statement. The consortium’s agreement was first announced in September 2025.
PIF maintained its investment stake, as indicated in its Schedule 13D amendment, which revealed that the fund contributed 24,807,932 shares valued at approximately $5.21 billion at the deal price to an indirect parent of the acquiring entity in exchange for equity.
The acquisition was backed by $20 billion in committed debt, according to EA’s latest quarterly report. First-lien term loans were funded at closing, and the buyers had previously issued secured and unsecured notes in April with interest rates ranging from 6.250% to 8.750%. EA reported GAAP net revenue of about $7.5 billion for fiscal year 2026 in its closing announcement.
Concerns have been raised regarding the buyers’ financial capacity. In November 2025, reports indicated that PIF was running low on cash for future investments, with sources pointing to struggling projects like the NEOM development. Notably, the EA agreement was made two months prior to these reports.
The new ownership structure now encompasses both ends of the esports value chain.
PIF funds the Esports Foundation, which was renamed from the Esports World Cup Foundation by a Saudi cabinet decision in February. This foundation organizes the Esports World Cup, currently taking place in Paris until August 23, featuring titles like Apex Legends and EA Sports FC 26. Additionally, PIF owns Savvy Games Group, which includes tournament operator ESL FACEIT Group among its subsidiaries. “Entertainment and sports are key areas of strategic focus for PIF,” stated Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF, in the closing announcement.
At the time of closing, seven directors resigned, and no replacements were named in the filing.
In January, over 40 House Democrats urged the Federal Trade Commission to investigate the transaction, supported by the Communications Workers of America. All necessary regulatory approvals were secured by July 30.
Key details still remain unclear, including the specific stakes of the consortium members in the new ownership, who will sit on the board of the surviving corporation, the annual interest expenses associated with the new capital structure, potential changes to the Apex Legends Global Series and EA Sports FC Pro budgets and frameworks under private ownership, and whether EA will align with or be integrated into Savvy Games Group’s operations. EA’s Form 15 will conclude its SEC reporting, leaving the indenture disclosures for noteholders as the likely source for future information.
For clubs, rights holders, and sponsors, this shift represents a change in counterparty dynamics: the publisher licensing two Esports World Cup titles, the foundation organizing the event, and the fund financing both are now under a single ownership umbrella. The strategic question arises as to whether a publisher burdened with $20 billion in acquisition debt, owned by the same sovereign fund that finances the competitive circuit for its titles, will price and manage those licenses in the same manner as an independent entity would.
