A consortium led by Saudi Arabia’s Public Investment Fund (PIF) has completed its USD 55 billion (41 billion euro) acquisition of Electronic Arts (EA), taking the video game publisher private in one of the largest leveraged buyouts in corporate history.
The deal, which received final regulatory approval from the European Union (EU) last week, marked the end of EA’s 36-year history as a publicly traded company.
The investor group includes Affinity Partners, the private equity firm founded by Jared Kushner, son-in-law of United States President Donald Trump, as well as technology-focused investment firm Silver Lake.
As per the reports, the deal went through in two parts. While investors came together to snap up stakes worth around USD 36 billion during the sale, the remaining approximate USD 20 billion was being covered by a loan taken against EA. The deal also became one of the largest leveraged buyouts in history because of this unique move.
In simple terms, EA now has a debt of USD 20 billion on its back that it needs to pay back. Analysts expect aggressive cost-cutting and equally intensive monetisation efforts in EA’s already well-monetised projects.
California-based EA is best known for blockbuster franchises, including EA Sports FC, formerly known as FIFA; The Sims; Battlefield; and Mass Effect. Chief executive Andrew Wilson will remain in charge after the transaction.
The acquisition is being viewed as Saudi Arabia’s boldest move yet into the global gaming industry as the Kingdom seeks to diversify its economy under its “Vision 2030” programme. Gaming and esports have emerged as strategic priorities for the sovereign wealth fund, which manages more than USD 900 billion in assets.
Saudi Arabia has invested heavily in the sector in recent years, launching Savvy Gaming Group, hosting major esports tournaments in Riyadh and preparing to stage the inaugural “Olympic Esports Games” in 2027.
In terms of investing in sports-related entities, PIF is not new to the arena. In October 2021, the sovereign investment fund bought 80% stakes (300 million pounds) in British football club Newcastle United.
And now the EA deal becomes the second-biggest acquisition in gaming history, after Microsoft’s USD 69 billion purchase of Activision Blizzard, the company behind “Call of Duty.”
Wilson, talking about the development, said that EA would now be focusing on creating “transformative experiences to inspire generations to come.”
“I am more energized than ever about the future we are building. Together, we’ll invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day,” he said further.
Industry analysts estimate that the transaction is the largest leveraged buyout on record. Reports suggest that, alongside the consortium’s equity contribution, around USD 20 billion has been financed through debt, raising questions about the long-term impact on EA’s operations.
Analysts have warned that private equity ownership could increase pressure to cut costs, accelerate monetisation and focus on established franchises. EA has already undergone significant restructuring, laying off about 5% of its workforce in 2024 and eliminating several hundred additional jobs earlier 2026.
Christopher Dring, editor-in-chief of The Game Business, said private equity firms often take an aggressive approach to management, while others fear that the publisher could prioritise sequels and blockbuster franchises at the expense of experimental titles.
The deal has also sparked debate over Saudi Arabia’s growing influence in entertainment. Critics argue that ownership of one of gaming’s most recognisable publishers gives the kingdom significant cultural reach, while supporters see the acquisition as a long-term investment in one of the world’s fastest-growing industries.
For Saudi Arabia, the takeover delivers more than a profitable gaming business; it provides control of a global entertainment brand that connects with billions of players worldwide.
The 35-year-old gaming studio is known for its “seemingly evergreen” live-service games that get continuously updated after release.
Despite facing many of the industry setbacks, such as layoffs and game cancellations, in recent years, the venture still has had a strong financial performance more recently.
In 2025, EA generated revenue of USD 7.5 billon, and the October release of “Battlefield 6” broke franchise records with over seven million copies sold in its first three days. Despite this, more layoffs for the teams involved followed.
However, as per senior Bloomberg journalist Jason Schreier, EA has plans to cut costs by an insane USD 700 million.
“In fact, of this cost-cutting, USD 170 million will come from ‘organisational efficiencies,’ which effectively if you translate this corporate mumbo-jumbo, means mass layoffs and perhaps even entire studios being shut down and projects being cancelled,” the scribe said in his Bluesky post.