Video game giant Electronic Arts (EA) is set to go private in a record-breaking $55 billion buyout led by Silver Lake and Saudi Arabia’s Public Investment Fund (PIF), in what is now the largest leveraged buyout in history.

The agreement, announced on Monday, values EA shares at $210 each, representing a 25% premium to last Thursday’s closing price in New York before speculation about the deal drove shares higher. The transaction surpasses the 2007 $45 billion takeover of TXU, making it the biggest deal of its kind, as well as the largest all-cash transaction of the year so far.

EA, best known for blockbuster franchises such as EA Sports FC, Madden NFL and The Sims, will continue to be led by its longtime chief executive Andrew Wilson. He is expected to remain at the helm once the transaction closes in the first half of 2027.

The financing package is built on $36 billion in equity contributions from the buying consortium, including PIF’s rollover of its existing 9.9% stake in EA, alongside a $20 billion loan organised by JPMorgan. The scale of the deal highlights investors’ confidence in the future of gaming and their belief that new technologies will drive higher profits.

Artificial intelligence is at the heart of this bet. Already used across Silicon Valley to streamline tasks such as coding and quality testing, AI is increasingly applied in games to generate environments, assets and non-playable characters. Investors believe that advances in the technology could soon create more responsive and personalised experiences for players while cutting development costs significantly.

The transaction also reinforces Saudi Arabia’s growing presence in the global gaming industry. Through its PIF and gaming subsidiary Savvy Games Group, the kingdom has invested heavily in major studios and franchises, aiming to position itself as a leading player in the $250 billion industry.

For Silver Lake, the deal adds another high-profile technology company to its portfolio. The private equity firm has previously backed some of the largest names in the sector and is now making one of its boldest bets to date with EA.