Electronic Arts (EA), one of the world’s largest video game publishers, has agreed to be acquired in a record-breaking $55 billion transaction by a consortium of investors led by Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Jared Kushner’s Affinity Partners.
The agreement, announced on Monday, represents the second-largest gaming acquisition in history, behind Microsoft’s $69 billion purchase of Activision Blizzard in 2023. The deal will take EA private, removing its shares from public markets and valuing the company at $210 per share — a 25% premium over its recent market capitalization.
A Gaming Giant Goes Private
Founded more than 40 years ago, EA has been synonymous with some of the industry’s most successful franchises. Its flagship football series, EA Sports FC (formerly FIFA), has sold more than 325 million copies worldwide since its 1993 debut. Other iconic titles include The Sims, Need for Speed, Mass Effect, and long-standing partnerships with franchises such as Harry Potter and James Bond.
Chief Executive Andrew Wilson, who will remain in his role, described the acquisition as “a powerful recognition” of EA’s global influence.
“Together with our partners, we will create transformative experiences to inspire generations to come,” Wilson said.
The buying consortium will provide approximately $36 billion in equity, while the remaining funds will be financed through debt — making the transaction the largest leveraged buyout in corporate history.
Industry Concerns
While the deal secures EA’s immediate financial future, analysts warn that the scale of debt involved — estimated at $20 billion — could place pressure on the company’s ability to invest in new projects.
“EA has been open to a potential buyer to help level up for a while,” said industry expert Christopher Dring. “But an acquisition from private equity is a surprise and there’s a lot of industry anxiety around this deal. The revenue from blockbusters like EA Sports FC, Madden, and Battlefield 6 will be needed to service the debt, which may impact EA’s ability to develop new titles.”
Dring also cautioned that the new ownership structure could result in workforce reductions if investors demand stronger cash flow.
Saudi Arabia’s Expanding Gaming Ambitions
The acquisition significantly expands Saudi Arabia’s footprint in the gaming sector. Through its sovereign wealth fund, the kingdom has been aggressively pursuing investments to diversify its economy beyond oil.
Recent acquisitions include the $3.5 billion purchase of Niantic’s gaming division earlier this year, giving it control over Pokémon Go, and the $4.9 billion takeover of Scopely Inc., the publisher of Monopoly Go, by PIF subsidiary Savvy Games Group in 2023.
Saudi Arabia has also positioned itself as a global hub for competitive gaming, hosting high-profile esports events such as the Esports World Cup and preparing to stage the Olympic Esports Games in 2027.
By acquiring EA, Saudi Arabia strengthens its influence over a publisher with franchises that have shaped generations of players worldwide.
A Controversial Backdrop
The deal also highlights geopolitical sensitivities. The PIF, chaired by Crown Prince Mohammed bin Salman, manages hundreds of billions of dollars in assets derived from the kingdom’s oil wealth. However, Saudi Arabia’s growing role in international business and sports has been overshadowed by human rights concerns.
A 2019 United Nations report held the Saudi state responsible for the killing of journalist Jamal Khashoggi, a prominent critic of the government. Riyadh has consistently denied state involvement.
Despite these controversies, analysts say the EA transaction underlines the kingdom’s determination to use its financial clout to shape the future of global entertainment.
