The $55 billion deal that took Electronic Arts off the stock market

One of gaming's biggest publishers has gone private, meaning its shares no longer trade on public stock exchanges and the company is no longer accountable to Wall Street investors. Electronic Arts officially closed that transition on Tuesday, completing a $55 billion deal led by Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners. The Public Investment Fund will reportedly hold 93.4 percent of the new company.

The deal's origins and structure

EA announced the transaction last September. The nine months between announcement and close reflect the regulatory and financing complexity typical of transactions at this scale. What emerged from that process was a structure built largely on borrowed money.

The deal carries $20 billion in debt financing, making it the largest leveraged buyout ever recorded. A leveraged buyout, often called an LBO, is a transaction where most of the purchase price is covered by borrowed money rather than cash on hand. The company being acquired typically inherits that debt and is expected to generate enough cash to service it.

What $20 billion in debt actually means

Twenty billion dollars in debt is not a passive arrangement. It creates a specific kind of pressure on any management team: produce cash at a pace that satisfies lenders. Divisions that do not generate meaningful revenue become candidates for cuts. Projects with long timelines are harder to justify when debt payments are due.

The $55 billion price tag did not come from investor cash alone. Twenty billion dollars of it was financed through debt, and that obligation now shapes what the new company must prioritize.

EA's franchise strategy under new ownership

Before the deal closed, EA had already been concentrating its attention on its largest properties. Battlefield and the company's sports titles are among the franchises EA has been focusing on heavily. That narrowing focus is consistent with what private owners need when a large debt obligation sits on the books and cash generation becomes the primary objective.

Tuesday's announcement confirmed the close and the ownership structure. It did not address layoffs or game cancellations. What is confirmed: the Public Investment Fund holds 93.4 percent of the new company, and $20 billion in debt financing is now on the books for the largest leveraged buyout ever completed.