2026-08-05 16:34:12
Electronic Arts has completed its $55 billion takeover by a consortium led by Saudi Arabia’s Public Investment Fund.
Marking one of the biggest acquisitions in video game history and ending the company’s decades-long run as a publicly traded business, the deal, which also includes Affinity Partners – the investment firm led by Jared Kushner – takes the publisher behind EA Sports FC, The Sims, Battlefield and Mass Effect into private ownership, prompting fresh debate over the future direction of one of the gaming industry’s most influential companies.
The acquisition, valued at $55 billion (£41 billion), was finalised after months of regulatory and financial negotiations.
Under the agreement, all publicly traded shares in Electronic Arts have been purchased, removing the California-based company from the stock market.
The deal is understood to be the largest leveraged buyout in history, with Saudi Arabia’s Public Investment Fund (PIF) contributing $36 billion while borrowing a further $20 billion from JPMorgan to complete the transaction.
The debt will sit with Electronic Arts, raising questions among analysts about how the company may seek to finance the acquisition in the years ahead.
Bloomberg journalist Jason Schreier told the BBC the transaction could lead to “mass layoffs, more aggressive monetization, and other big cost-cutting measures” as the company adjusts to its new ownership structure.
Christopher Dring, editor-in-chief and co-founder of The Game Business, told the BBC the structure of the takeover was also likely to result in “a very hands-on approach from the investment group”.
He said: “Private equity firms are typically aggressive in their management of companies.”
Electronic Arts is one of the world’s largest video game publishers, with a catalogue spanning blockbuster sports franchises and critically acclaimed role-playing games.
The company recently rebranded its long-running football series from FIFA to EA Sports FC following the end of its licensing agreement with football’s governing body, while franchises including The Sims, Mass Effect, Dragon Age and Battlefield continue to rank among its most recognisable titles.
Most recently, Battlefield 6 became one of the company’s strongest launches, selling more than seven million copies in its first three days.
Industry figures have questioned whether the new ownership could alter Electronic Arts’ approach to publishing.
Shams Jorjani, chief executive of Arrowhead Game Studios, said: “This deal is consolidation, no question – and I wonder whether new ownership optimises for the safe bet – more sequels, more mega-franchises – over that breadth.
“I’m hopeful this leads to more of that range, not less, but if it turns EA into a sequel-and-mega-franchise machine, that’s a real waste of one of the best catalogues in the industry.”
The acquisition has also prompted concern among some players over the future creative direction of games including The Sims, which has long been recognised for its inclusive approach to character creation and same-sex relationships.
Advocacy group Players Alliance HQ has urged gamers to campaign against the takeover.
Its 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.”
At the announcement of the acquisition, Electronic Arts chief executive Andrew Wilson, 51, confirmed he would remain in charge of the company following the takeover.
He said: “I am more energised than ever about the future we are building.
“I plan to create transformative experiences to inspire generations to come.”
The Public Investment Fund, controlled by Saudi Arabia’s Crown Prince Mohammed bin Salman has become one of the world’s most active investors in sport, gaming and entertainment.
Its investments include Premier League club Newcastle United, four clubs in the Saudi Pro League and major esports events, including the Esports World Cup.
The fund has repeatedly faced scrutiny over allegations that such investments form part of a wider effort to improve Saudi Arabia’s international image, claims the Saudi government has consistently denied.
George Osborn, author of Power Play: Video Games, Politics and the Battle for Global Influence, said the attraction of Electronic Arts extended beyond its financial performance.
He said: “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.”
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