Connect with us

Hi, what are you looking for?

Entertainment

EA Bought in Record $55bn Deal by Saudi Fund and Partners

EA Bought in Record $55bn Deal
Image Source: By Electronic Arts

Gaming giant Electronic Arts (EA), publisher of blockbuster series including EA Sports FC, The Sims and Mass Effect, has been sold in a record-breaking $55bn (£41bn) leveraged buyout.

The deal, involving Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake and Jared Kushner’s Affinity Partners, is the largest leveraged buyout in history. It will take EA private, with all public shares purchased at $210 each, a 25% premium on its market value.

The only bigger deal in the sector was Microsoft’s $69bn takeover of Activision Blizzard, which faced heavy regulatory scrutiny before completion last year.

EA Boss to Stay On

EA chief executive Andrew Wilson will remain in post, describing the agreement as “a powerful recognition” of the company’s legacy.

“Together with our partners, we will create transformative experiences to inspire generations to come,” he said.

The consortium will contribute around $36bn in equity, with the remainder financed through loans. That level of borrowing is raising concerns within the gaming industry.

Industry Concerns Over Debt

Analyst Christopher Dring told the BBC the deal had “created a lot of anxiety” within gaming.

“An acquisition from private equity is a surprise, and there are concerns about the $20bn debt. Servicing that debt will rely heavily on the revenue from EA’s biggest franchises, like EA Sports FC, Madden and Battlefield,” he said.

Dring warned this could limit investment in new projects and increase pressure for job cuts if private investors demand higher cash flow.

Saudi Arabia’s Growing Gaming Influence

For Saudi Arabia, the deal represents another major step in its expansion into gaming.

In 2023, PIF subsidiary Savvy Games Group bought Monopoly Go developer Scopely for $4.9bn.

In 2025, the fund spent $3.5bn acquiring the gaming arm of Niantic, makers of Pokémon Go.

Saudi Arabia also holds stakes in Nintendo and Take-Two Interactive and has hosted major esports events, including the eSports World Cup.

The kingdom is also preparing to host the Olympic Esports Games in 2027.

A Legacy Publisher

Founded in 1982, EA has sold hundreds of millions of games worldwide:

  • EA Sports FC/FIFA series – 325m copies since 1993
  • The Sims – 200m copies
  • Need for Speed – 150m copies

Its catalogue also includes collaborations on Harry Potter and James Bond titles.

Human Rights Questions

Saudi Arabia’s increasing role in global gaming has prompted criticism given its human rights record. Crown Prince Mohammed bin Salman oversees PIF, which has assets worth hundreds of billions.

A 2019 UN investigation found the Saudi state responsible for the murder of journalist Jamal Khashoggi — allegations the kingdom has repeatedly denied.

You May Also Like

Family

Married people who wish to have a divorce in the United Kingdom have to follow a predetermined process of divorce. Every couple about to...

Technology

In the digital age, server proxies have become a cornerstone for businesses and individuals alike, offering anonymity, security, and a means to bypass geographical...

Apps and Software

Wondershare created the video editing program Filmora. Content producers, social media marketers, YouTubers, and other media-focused professionals can use it as a video editor....

Apps and Software

Mobile app development is everything related to creating software for mobile phones and digital assistants, generally for android and iOS devices. You can find...