Gaming giant Electronic Arts (EA) has struck a landmark agreement to sell itself in a $55bn (£41bn) deal, the largest leveraged buyout in history.
The takeover is being led by a consortium including Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Jared Kushner’s Affinity Partners.
EA, the studio behind best-selling franchises such as EA Sports FC (formerly FIFA), The Sims, and Mass Effect, will now go private—its public shares bought out at $210 each, a 25% premium on market value.
One of Gaming’s Biggest Deals
This acquisition becomes the second most valuable in gaming history, behind only Microsoft’s $69bn purchase of Activision Blizzard, completed in 2023 after intense regulatory battles.
Unlike that deal, much of EA’s $55bn purchase will be financed through loans, leaving the company with around $20bn of debt to service. Analysts warn this could place pressure on EA’s development pipeline, with reliance on blockbuster titles like EA Sports FC, Madden, and Battlefield 6 to sustain cash flow.
“An acquisition from private equity is a surprise,” said games industry expert Christopher Dring. “The concern is whether this will mean fewer risks taken on new projects, or even further job cuts, to keep up with debt repayments.”
Saudi Arabia Expands Its Gaming Empire
The deal also cements Saudi Arabia’s growing influence in the gaming world. Over the last two years, its PIF—controlled by Crown Prince Mohammed bin Salman—has invested billions in companies including Nintendo, Take-Two, Scopely, and most recently the gaming division of Niantic, creators of Pokémon Go.
The kingdom is also betting big on eSports, hosting major tournaments such as the eSports World Cup and preparing for the Olympic Esports Games in 2027.
For Saudi Arabia, the EA deal adds another jewel to its portfolio, securing influence over one of the most iconic publishers in the industry’s 40-year history.
EA Looks Ahead
EA’s chief executive Andrew Wilson, who will stay on as boss, called the sale a “powerful recognition” of the company’s legacy.
“Together with our partners, we will create transformative experiences to inspire generations to come,” he said.
Still, with debt hanging over the deal, the industry will be watching closely to see whether EA can maintain its track record of blockbuster success—or whether pressure from new owners reshapes its future.
Source: BBC
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