Saudi-led group completes $55bn purchase of gaming giant EA
The deal takes the maker of titles including The Sims and EA FC into private ownership - and loads it with debt.
A Saudi-led consortium has finalized the acquisition of gaming giant Electronic Arts (EA) for $55 billion (£41 billion). The group of buyers includes Saudi Arabia's Public Investment Fund (PIF) and Affinity Partners, led by Jared Kushner, son-in-law of former President Donald Trump.
EA, an American company, is renowned for developing and publishing best-selling titles such as EA FC (formerly Fifa), The Sims, and Mass Effect. Its football games alone, from Fifa to EA FC, have collectively sold over 325 million copies since their debut in 1993.
This transaction will take EA private, meaning all its publicly traded shares will be purchased, and it will no longer be listed on a stock exchange. This deal is believed to be the largest leveraged buyout in history, where a substantial portion of the purchase is financed by borrowed money that the acquired company will be responsible for repaying. The PIF, having already invested $36 billion, needs to secure an additional $20 billion loan from JPMorgan investment bankers to complete the deal, with EA assuming this debt.
The implications of this debt repayment on EA's business operations have sparked considerable speculation among journalists and analysts. Jason Schreier of Bloomberg suggested it could lead to "mass layoffs, more aggressive monetization, and other big cost-cutting measures" for one of the industry's leading companies. Christopher Dring, editor-in-chief and co-founder of The Game Business, indicated that the nature of the buyout would likely result in "a very hands-on approach from the investment group," noting that "private equity firms are typically aggressive in their management of companies."
The acquisition has raised concerns among some fans of EA's extensive game library, particularly given that titles like The Sims advocate for inclusivity and LGBT+ relationships. In Saudi Arabia, consensual same-sex sexual conduct can be punishable by death or flogging under interpretations of Sharia law. In response, the advocacy group Players Alliance HQ has urged gamers to contact their local politicians and voice their opposition to the deal. Their website states, "Video games are a reflection of culture and people through their storylines, characters and representation. With the PIF being the majority owner in the potential buyout, there is a large concern that creative decisions could be influenced by these outside factors, leading to themes such as free speech, gender, LGBTQI+ and other aspects of Western politics being reduced or fully censored across major franchises." Communities within EA games, such as The Sims, have also initiated petitions against the deal.
The PIF, a £514 billion fund managed by the Saudi Arabian government, invests in various ventures, including the football club Newcastle United. This acquisition ranks as the second-largest in gaming history, trailing only Microsoft's $69 billion purchase of Activision Blizzard, the company behind Call of Duty.
Andrew Wilson, EA's chief executive, who will remain in his position, expressed his enthusiasm at the initial deal announcement, stating the firm's plans to "create transformative experiences to inspire generations to come." He added, "I am more energized than ever about the future we are building."
The rationale behind Saudi Arabia's substantial investment in EA has been a prominent topic since the deal's announcement in September 2025. George Osborn, a journalist and author of "Power Play: Video Games, Politics and the Battle for Global Influence," described it as an "appealing" financial opportunity for the PIF despite the hefty price tag. He highlighted the 35-year-old company's longevity and its "seemingly evergreen" live-service games, which receive continuous updates post-release.
Despite industry-wide challenges in recent years, such as layoffs and game cancellations, EA has demonstrated strong financial performance. Last year, the company generated $7.5 billion in revenue, and the October release of Battlefield 6 set franchise records, selling over 7 million copies in its first three days, though this was followed by further layoffs for the development teams.
Osborn emphasized that EA's value to the PIF extends beyond economics, viewing it as "owning a soft power asset that is quietly entrenched in the sporting community." The PIF's investments, from the £300 million takeover of Premier League club Newcastle United to the acquisition of four Saudi League football clubs, have consistently focused on major sporting ventures to expand its global influence. In the intersection of gaming and sport, Saudi Arabia has also hosted significant esports tournaments, including the Esports World Cup in 2025.
However, these large-scale purchases have frequently drawn accusations of "sportswashing"—using sports events to cultivate a positive public image and divert attention from human rights concerns. While the Saudi Arabian government has consistently denied these claims, Osborn suggested the EA deal could offer another avenue for projecting its influence. He noted, "If the PIF's football strategy limited them to ownership of Newcastle United and some Saudi Pro League teams, owning EA hands them a relationship with the 20,000 players, 750 clubs and 35 leagues at the top of the professional game." He concluded, "What is clear is that a state seeking to shape perceptions now owns an asset with proven reach to billions of people. How it uses it in the years to come is something we should watch closely."
The PIF is controlled by Saudi Arabia's Prince Mohammed bin Salman. His government has faced accusations of human rights violations, including a 2019 UN report stating that "the state of the Kingdom of Saudi Arabia is responsible" for the death of journalist Jamal Khashoggi, a critic of the government. Saudi Arabia has consistently denied these allegations.