Electronic Arts (EA), one of the world’s largest video game developers and publishers, has agreed to a $55 billion buyout by Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Jared Kushner’s Affinity Partners. This landmark deal marks the largest all-cash sponsor take-private transaction in history, offering EA shareholders $210 per share—a 25% premium over the company’s unaffected price. Once the transaction is completed, EA will be delisted from public markets, transitioning the company into private ownership. EA’s CEO, Andrew Wilson, will remain at the helm, with the company asserting that private ownership will allow for faster innovation and greater global expansion.
The deal has already sparked controversy, with critics raising concerns about the implications of Saudi ownership over one of gaming’s most influential brands. The Public Investment Fund, a sovereign wealth fund controlled by the Saudi government, will effectively gain control of EA, which has long been a global leader in the gaming industry. While investors stand to benefit from the financial upside, many gamers and industry observers are worried about how Saudi influence might shape EA’s creative direction, pricing strategies, and role in esports. The company’s future as a global brand could be significantly impacted by the political and cultural priorities of its new owners.
Regulatory approvals are still pending, and the transaction faces scrutiny from various international regulators. The deal raises difficult questions about the intersection of gaming, politics, and global soft power, particularly as Saudi Arabia continues to expand its influence through economic investments. Analysts warn that the merger could set a precedent for other major tech and entertainment companies to be acquired by state-backed funds, reshaping the industry’s landscape. As the deal moves forward, the gaming community and investors will be closely watching its potential impact on the future of EA and the broader entertainment sector.