Whispers from Wall Street suggest a monumental shift is underway in the gaming industry. Jared Kushner’s private equity firm, Affinity Partners, is reportedly spearheading discussions with a consortium of major investors, including the influential Saudi sovereign wealth fund and Silver Lake Partners, to acquire Electronic Arts. Sources familiar with the confidential talks indicate that this massive buyout could value the video game powerhouse, known for blockbusters like Madden N.F.L. and Battlefield, at an staggering $50 billion. This potential move highlights a resurgence in high-stakes deal-making following a period of market uncertainty caused by President Trump’s tariff announcements last spring. With stock markets soaring and renewed confidence in regulatory approvals under the current administration, many large-scale transactions are back on the table.
Recent months have seen a flurry of significant corporate acquisitions, such as Union Pacific’s $85 billion deal for Norfolk Southern and Keurig Dr Pepper’s $18 billion acquisition of Peet’s. News of the Electronic Arts discussions, initially reported by The Wall Street Journal, sent EA’s shares soaring by almost 15 percent on Friday, pushing its market valuation close to $48 billion. This renewed interest brings fresh attention to Affinity Partners, the private equity firm established by Jared Kushner, President Trump’s son-in-law, after his father-in-law’s first term. The firm notably counts the Saudi sovereign wealth fund, the Public Investment Fund, among its investors – a connection that has previously raised eyebrows given Mr. Kushner’s past dealings with the Saudi government during his time in the Trump administration. The Public Investment Fund is also a long-standing investor in Electronic Arts. All parties involved – Silver Lake, Affinity Partners, the Public Investment Fund, and Electronic Arts – have remained silent on the matter, declining requests for comment. Typically, private equity buyouts involve acquiring public companies, often those deemed underperforming, using substantial debt. The goal is to implement strategic changes, boost performance, and eventually re-sell the company at a higher valuation.
Should this acquisition proceed, it could dwarf the current record for a private buyout: the $32 billion purchase of Texas utility TXU in 2007. This potential deal emerges at a critical juncture for the gaming industry, which is experiencing massive shifts. Younger audiences are increasingly drawn to accessible mobile and free-to-play games, diverging from the traditional, costly blockbuster franchises that have been Electronic Arts’ hallmark. Developing major EA titles such as Battlefield, FIFA, and Madden often requires years and investments running into hundreds of millions of dollars.
Jared Kushner in Riyadh, Saudi Arabia, in 2022. The Saudi sovereign wealth fund is an investor in Mr. Kushner’s private equity fund, Affinity Partners.
In 2025, Electronic Arts faced setbacks with disappointing sales for some of its key titles, including the soccer game EA Sports FC and the action RPG Dragon Age: The Veilguard. Even popular free-to-play offerings like Apex Legends, which relies on in-game purchases for additional features, haven’t met revenue expectations, as disclosed by the company in a recent earnings call.
Despite these challenges, private investors are eyeing the vast potential in EA’s intellectual property portfolio. The strategy involves transforming some of EA’s biggest franchises into mobile-friendly, free-to-play games that generate revenue through in-app purchases, thereby attracting a broader global audience. This approach aligns with the Saudi sovereign wealth fund’s growing emphasis on mobile gaming; in 2021, it established Savvy Games Group to direct a planned $38 billion investment into the sector. The fund already holds stakes in successful mobile developers like Scopely (of Monopoly Go fame) and Niantic (creator of Pokémon Go), both of whom have successfully adapted well-known IPs for the mobile market. For Electronic Arts, making such significant strategic shifts would undoubtedly impact its quarterly profits, a tough sell for publicly traded companies under constant market scrutiny. However, a private acquisition would free the company from the immediate pressures of quarterly earnings reports, allowing for bold, long-term overhauls. As Michael Pachter, a managing director at Wedbush Securities and keen observer of the gaming industry, put it, ‘They’re going to take it private and they’re going to do what they’ve got to do to make this work.’ Earlier this year, EA demonstrated its readiness for change by closing several game studios and canceling highly anticipated titles, including a Black Panther game and another project, Titanfall, that was deep in development.