Electronic Arts confirmed Monday that the company was being acquired by private investors, including Saudi Arabia’s Public Investment Fund, private equity fund Silver Lake, and Affinity Partners, the investment firm founded by Jared Kushner, Donald Trump’s son-in-law. The deal is worth $55 billion, according to EA, making it the second-largest transaction in the history of the video games industry, behind Microsoft’s acquisition of Activision Blizzard.
According to EA, the transaction positions the publisher of Madden, Apex Legends, and The Sims “to accelerate innovation and growth to build the future of entertainment.”
“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work,” said Andrew Wilson, chairman and CEO of Electronic Arts, in a news release. “Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.”
Wilson will continue to serve as CEO of EA as part of the deal.
The arrangement to take EA private — it’s been a public company since 1990 — is another step in Saudi Arabia’s massive and growing investment in the video game business. The kingdom’s Public Investment Fund (PIF), through its Savvy Games Group, has spent billions on minority ownership stakes in Capcom, Nexon, Nintendo, Take-Two Interactive, and the Embracer Group. The PIF already had a 10% ownership stake in EA. Savvy Games Group-owned publisher Scopely snapped up Pokémon Go maker Niantic earlier this year for $3.5 billion.
Saudi Arabia’s investments in game publishers, developers, and esports organizations have been controversial, similar to accusations of the PIF “sportswashing” — meaning investments in sporting events like the World Cup and the establishment of LIV Golf, a league alternative to the PGA, to improve Saudi Arabia’s global reputation. PIF’s chairman, Mohammed bin Salman — also known as MBS and supposedly a “massive gamer” — is the de facto ruler of the Kingdom of Saudi Arabia. Mohammed has been accused of ordering the killing of Washington Post columnist Jamal Khashoggi, according to reports of findings by the CIA.
Also purporting to be a gamer is Kushner, husband of Ivanka Trump. “Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future,” Kushner, CEO of Affinity Partners, said in a news release. “I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games — and now enjoys them with his kids — I couldn’t be more excited about what’s ahead.”
The $55 billion buyout of EA will come with $20 billion in debt financed by JPMorgan Chase Bank. Mat Piscatella, senior director at market research firm Circana, called that debt figure “a shockingly large number to have to service.” EA may need to quickly and aggressively adapt, which could mean more layoffs and increased monetization. EA laid off 670 workers in 2024, and an additional 300-400 in May.
According to a report from the Financial Times, EA’s new investors are betting on AI-powered cost-cutting measures to “significantly boost EA’s profits in the coming years.” Analysts at Freedom Capital Markets say the buyout “should enable EA to increase its focus on long-term growth opportunities that may have been viewed as too risky or expensive as a public company,” Reuters reported Monday.
What the deal means for Electronic Arts’ suite of games, however, remains unclear. EA generates more than 70% of sales from live-service revenue from games like Madden NFL, EA Sports FC, Apex Legends, and The Sims 4, meaning those games would continue to be investments for the company. The company’s next big game, Battlefield 6, launches in October.
“Our values and our commitment to players and fans around the world remain unchanged,” Wilson said in an email to EA employees on Monday. So, yeah, no Titanfall 3, even under the new regime.
