Saudi-led group finalizes $55B EA takeover

Electronic Arts is no longer an independent company. A consortium led by Saudi Arabia’s Public Investment Fund has completed its $55 billion takeover, giving the sovereign wealth fund a 93.4% stake in the video game publisher.

The deal, first announced in September, closed this week. Alongside the fund, the group includes private equity firm Silver Lake and Affinity Partners, an investment fund founded by Jared Kushner, son-in-law to Donald Trump.

PIF already held a 9.9% stake in EA, which it said provided a strong grasp of the company’s global franchises and intellectual property. The fund also owns minority stakes in Nintendo, Take-Two Interactive, and Activision Blizzard.

EA’s leadership described the acquisition as a positive development. CEO Andrew Wilson called it recognition of the company’s talent and said the deal would bring long-term capital, industry expertise, and strategic support. He stated that EA would keep creative control and that its player-first values would remain unchanged.

Silver Lake CEO Egon Durban echoed this optimism, highlighting the role of artificial intelligence in improving game development and player experience. His firm, known for aggressive cost-cutting in past investments, did not mention layoffs directly. However, EA took on $20 billion in debt to finance the deal, and Wilson received a $38 million payout shortly before its completion. Those costs will need to be addressed.

The acquisition has drawn criticism from the beginning. Observers argue that Saudi Arabia’s investment in gaming is more about soft power than profit, using cultural influence to improve its global image. The fund has invested heavily in sports, entertainment, and now video games, sectors that shape public perception beyond their financial returns.

Last October, Democratic Senators Richard Blumenthal and Elizabeth Warren raised concerns in a letter to Treasury Secretary Scott Bessent. They warned of foreign influence and national security risks, noting that PIF operates as an arm of the Saudi government. The senators cited the fund’s pattern of strategic investments in cultural institutions as evidence of broader geopolitical goals.

The Committee on Foreign Investment in the United States approved the deal without public explanation. Neither the Treasury Department nor EA responded to the senators’ questions, and no conditions or safeguards imposed on the buyers have been revealed. Blumenthal and Warren have not commented since the deal closed.

For EA’s employees, the takeover comes at a difficult moment. The company has faced criticism for stagnant franchises and dependence on annual sports titles. BioWare, its role-playing game studio, hasn’t had a major hit since 2014’s Dragon Age: Inquisition. Workers there have already voiced concerns about the new ownership, especially as artificial intelligence tools gain traction in creative fields.

Layoffs may be inevitable. While the new owners discuss growth and innovation, the debt load and Wilson’s payout suggest budget cuts are coming. Durban’s remarks about AI, though vague, point to a future where automation plays a larger role in game development.

Kushner’s involvement has drawn additional scrutiny. His firm, Affinity Partners, received a $2 billion investment from PIF in 2022.

The deal ranks among the largest in gaming history. For now, EA’s operations continue unchanged. But with PIF’s majority control, the company’s future—and its workforce—could shift significantly in the coming year.

Similar consolidation has reshaped other industries. High-profile partnerships in esports have drawn comparisons to the growing influence of sovereign wealth funds in entertainment.