Electronic Arts (EA) has confirmed its intention to transition to private ownership. A consortium encompassing Saudi Arabia’s Public Investment Fund, Jared Kushner’s Affinity Partners, and private equity firm Silver Lake has secured EA in a monumental $55 billion agreement (as reported by Reuters).

“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans… Together with our partners, we will create transformative experiences to inspire generations to come,” said Andrew Wilson, Chairman and CEO of Electronic Arts, in an official news release.

As part of the acquisition, all EA shareholders will receive $210 per share in cash. This valuation reflects a 25% premium based on EA’s stock price prior to the announcement of the deal. The $55 billion buyout sets a new record, surpassing the previous largest leveraged buyout of TXU in 2007, signaling a pivotal transition for the gaming industry giant.

This development comes as EA readies itself for the launch of Battlefield 6, anticipated to be one of the most significant releases of the year. Despite enjoying recent successes such as the acclaimed release of FC 26, EA has faced challenges in recent years, including the loss of the FIFA license and fluctuations in game quality.

The full implications of this buyout on EA’s future, including its development practices and relationships, remain to be seen.