The largest leveraged buyout in history isn't some tech unicorn or traditional conglomerate. It's Electronic Arts, the company behind EA Sports FC, The Sims, and Battlefield. And the buyer? Saudi Arabia's sovereign wealth fund, teaming up with private equity firms Silver Lake and Jared Kushner's Affinity Partners to take the gaming giant private in a record-shattering $55 billion deal.
This isn't just another acquisition announcement. It's the moment when one of gaming's most influential publishers becomes answerable to a kingdom with a complicated human rights record and an ambitious plan to dominate global entertainment.
The deal, announced Monday, values EA at $210 per share in cash - a 25% premium that sent investors scrambling to recalculate what this means for an industry already grappling with post-pandemic growth challenges. JPMorgan is providing about $20 billion in debt financing; the deal is the largest leveraged buyout on record.
For Saudi Arabia's Public Investment Fund (PIF), which already held a 9.9% stake in EA that will roll over into the deal, this represents their biggest bet yet on interactive entertainment. The fund has been methodically building a gaming empire through its Savvy Games Group subsidiary, which has already acquired Monopoly Go maker Scopely for $4.9 billion and taken stakes in everything from Nintendo to Take-Two Interactive.
But EA is different. This is FIFA-level global reach we're talking about. EA Sports FC (the game formerly known as FIFA) alone commands massive cultural influence worldwide, while The Sims has shaped how millions think about virtual life simulation. These aren't just games - they're digital experiences that reach hundreds of millions of players across every demographic.
The timing tells its own story. EA has been struggling with what CEO Andrew Wilson diplomatically calls "sluggish growth for the $178 billion video game industry" after pandemic-era sales swelled and then deflated. The company has gone through multiple rounds of layoffs while searching for new ways to inspire players who increasingly gravitate toward free-to-play games rather than spending $80 on new titles.
Going private removes the quarterly earnings pressure that's been constraining EA's ability to take bigger creative risks. But it also loads the company with an estimated $20 billion in debt that needs servicing. Industry analysts are already raising concerns about whether revenue from EA Sports FC, Madden, and the upcoming Battlefield 6 will be sufficient to handle these debt obligations while still investing in new game development.
The deal structure reveals just how serious Saudi Arabia is about gaming dominance. The investor group is contributing roughly $36 billion in equity, with PIF rolling over its existing stake, alongside Silver Lake and Affinity Partners. This builds on their Vision 2030 economic plan, which aims to establish 250 game companies locally and create 39,000 jobs while raising gaming's contribution to Saudi GDP to $13 billion by 2030.
There's also the Jared Kushner factor. His Affinity Partners fund, backed by Middle Eastern investors including Saudi sources, brings political complexity to what's already a geopolitically sensitive transaction. Most large deals involving foreign investors require government approval, and this one will likely face scrutiny given the current administration's relationship with both parties.
The human rights questions aren't going away either. Saudi Arabia's track record on LGBTQ+ rights and press freedom has already sparked "sportswashing" criticism in other entertainment investments. For a gaming industry that increasingly champions diversity and inclusion, having EA answer to Riyadh creates uncomfortable tensions that won't be resolved by press releases about "transformative experiences."
What this means for players is still unclear. EA promises that headquarters will remain in Redwood City, California, with Wilson staying as CEO. The usual corporate speak about "unlocking new opportunities" and "pushing boundaries" suggests business as usual, at least initially.
But private equity ownership changes everything. The focus shifts from quarterly growth to longer-term value extraction, which could mean either more creative freedom or more aggressive monetization - possibly both. The $20 billion debt load adds pressure for consistent cash flow from established franchises like EA Sports FC and The Sims, potentially at the expense of experimental new IP.
The broader gaming industry is watching this deal closely because it represents a new phase of consolidation. After Microsoft's $69 billion acquisition of Activision Blizzard, and with Sony, Tencent, and other giants making strategic moves, independent publishers are becoming increasingly rare. Saudi Arabia's aggressive gaming investments suggest they're betting that controlling content creation is key to cultural influence in the digital age.
The transaction is expected to close by June 2026, pending regulatory approvals that could prove more complex than typical private equity deals. Until then, EA continues operating as usual, but the die is cast. One of gaming's most influential companies will answer to a sovereign wealth fund with about $1 trillion under management after the deal closes.
Whether this proves transformative or troubling for gaming culture depends largely on how Saudi Arabia chooses to wield this newfound influence. For now, your favorite EA games remain the same. But the money behind them - and the power structure controlling their future - has fundamentally changed.
The age of Saudi-controlled gaming has officially begun, and EA Sports FC is just the opening play.
Image source - (Paul Sakuma/The Canadian Press)
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