Behind the Landmark US$55bn Takeover of Gaming Giant EA
Electronic Arts (EA), the publisher behind some of the world's most popular video games including EA FC and The Sims, has agreed to be acquired for US$55bn in what is understood to be the largest leveraged buyout in history.
The consortium purchasing the gaming giant includes Saudi Arabia's Public Investment Fund (PIF), private equity firm Silver Lake and Jared Kushner's Affinity Partners.
The deal values EA at US$210 per share, representing a 25% premium on its market value, and will take the company private by purchasing all its publicly traded shares.
It marks the second most valuable gaming acquisition in history, trailing only Microsoft's US$69bn purchase of Activision Blizzard in 2023.
Debt financing raises industry concerns
The structure of the deal has triggered some significant anxiety in the gaming industry, with approximately US$36bn coming from the buyers and the remainder financed through loans.
Industry analyst Christopher Dring highlights some of the potential consequences of this approach.
"EA has been open to a potential buyer to help level up for a while," he says.
"But an acquisition from private equity is a surprise and there's a lot of industry anxiety around this deal."
The financing structure is expected to saddle EA with approximately US$20bn of debt that will need to be serviced through revenue from its major franchises.
"The revenue generated by big games like EA FC, Madden and Battlefield 6 will be needed to service this debt, which may impact EA's ability to invest in new games," Christopher explains.
Some in the industry also have concerns about potential cost-cutting measures if the private equity owners demand stronger cash flow to service the debt obligations.
EA's gaming portfolio
EA has been a dominant force in gaming for more than four decades, responsible for some of the industry's biggest franchises.
Its football titles, now branded as EA FC following the end of its FIFA licensing agreement, have sold 325 million copies since launching in 1993.
The Sims franchise has generated more than 200 million sales, while Need For Speed has exceeded 150 million copies sold.
The company has also published numerous titles based on major entertainment properties including Harry Potter and James Bond.
EA's CEO, Andrew Wilson, who will remain in his position following the acquisition, describes the deal as significant recognition of the company's achievements.
"Together with our partners, we will create transformative experiences to inspire generations to come," he says.
Saudi Arabia's expanding gaming interests
The purchase substantially extends Saudi Arabia's presence in the global gaming industry.
In March 2025, the nation's Public Investment Fund paid US$3.5bn to acquire Niantic's gaming division, gaining control of Pokémon Go.
That acquisition became part of Scopely Inc, the Monopoly Go developer that PIF subsidiary Savvy Games Group had purchased for US$4.9bn in 2023.
Saudi Arabia has also established itself as a major force in esports, hosting tournaments including the eSports World Cup and securing rights to host the 2027 Olympic esports Games.
The country already holds stakes in Nintendo and Take-Two Interactive, though the EA acquisition represents its most significant gaming investment to date.
The PIF, which controls hundreds of billions in assets from Saudi Arabia's oil wealth, is overseen by Crown Prince Mohammed bin Salman, whose government faces international scrutiny over human rights concerns.
A 2019 United Nations report concluded that Saudi Arabia bore responsibility for the death of journalist Jamal Khashoggi, who had been critical of the government, though the kingdom has consistently denied these allegations.
