A consortium of buyers – including Saudi Arabia’s Public Investment Fund (PIF) and Jared Kushner’s Affinity Partners – is set to acquire video-game manufacturer Electronic Arts (EA) for $55 billion, according to an Associated Press report.
Notably, this agreement will apparently be the largest-ever leveraged buyout. To explain, such a financial arrangement involves a significant amount of the purchase financed by borrowed money.
Interestingly, the deal will make EA a private entity, which means that it will no longer trade on stock exchanges around the world
For context, Electronic Arts has developed a plethora of globally popular video games like EA FC (formerly known as FIFA), Madden, The Sims and Mass Effect, etc.
What Can EA Look Like After Going Private?
The consortium buying EA will splurge around $36 billion, with the remaining funds coming from loans. And it is possible that this takeover will give Electronic Arts more wiggle room in terms of the development and distribution of its game titles.
To explain, EA might well be able to restructure its operations without worrying about shareholders’ scrutiny and other types of market oversight.
For context, EA has recently faced criticism for moving toward live-service gaming, which features a continuous stream of new content aimed at keeping players online longer. It has also faced scrutiny over other monetisation efforts that some gamers see as ‘aggressive’.
Importantly, EA’s proposed buyers haven’t indicated any plans to do away with such models, with company executives broadly highlighting apparent ‘growth’.
“Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities,” Andrew Wilson, who is EA’s CEO, remarked.
Importantly, Wilson will remain in his executive position even after the private equity takeover goes through.
Why It Matters
The go-private agreement involving Electronic Arts is definitely going to be one of the landmark deals for the Saudi PIF, which the country’s Crown Prince Mohammed bin Salman directly controls.
The Middle East country will host the 2034 FIFA World Cup, and it looks like the acquisition of the developer of the world’s most popular football video game is a conscious step.
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Interestingly, the EA agreement is not Saudi Arabia’s first such deal: the country’s PIF bought the gaming division of Niantic in March 2025 for $3.5 billion, giving it control over the popular mobile game Pokémon Go.
Meanwhile, the Middle Eastern nation was in the news for hosting the eSports World Cup earlier this year in Riyadh, and it will host the upcoming Olympic esports Games in 2027, followed by the above-mentioned FIFA World Cup.
The kingdom country has long faced allegations of sportswashing: a phenomenon where a nation-state invests money in sporting teams and events to launder its ‘tainted’ image…
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