Gaming giant goes private in record $55 billion buyout backed by Saudi wealth fund

Video game giant Electronic Arts Inc. (EA) is officially going private after a $55 billion acquisition deal has been finalized by a consortium of investors, including the renowned Saudi PIF, marking one of the largest corporate buyouts in history and the biggest leveraged private equity deal ever recorded.

The consortium includes Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), investment firm Silver Lake, as well as Affinity Partners, as noted in an official press release, with the latter having been founded by US President Donald Trump’s son-in-law Jared Kushner.

The deal takes EA off public markets, meaning its shares will no longer be traded on a stock exchange. The company, known for blockbuster franchises including The Sims, Need for Speed and its football series EA FC (previously known as FIFA), will operate under private ownership.

Under the leveraged buyout structure, a significant portion of the purchase price is being financed through debt that the company will ultimately assume responsibility for repaying. The consortium contributed around $36 billion to the transaction, while approximately $20 billion was borrowed from investment banks, including JPMorgan Chase.

EA Chief Executive Andrew Wilson said the company’s new ownership structure would allow it to “invest boldly, accelerate innovation, and build the next generation of games and experiences” for its global player base.

PIF, which had already held a minority stake in EA for five years, also pledged to continue investing in the company’s expansion, including the use of artificial intelligence in game development. Turqi Alnowaiser, the Deputy Governor and head of international investments at PIF, said the fund intends to support EA’s future growth.

However, analysts have raised questions over how the large debt burden could affect the company’s future strategy.

Some industry observers warned that the need to repay borrowing could lead to cost-cutting measures, including possible layoffs, increased monetisation of games and a greater focus on profitability. Bloomberg’s Jason Schreier suggested the acquisition could result in “mass layoffs, more aggressive monetization, and other big cost-cutting measures.”

The acquisition has also raised broader concerns about consolidation in the gaming industry. EA’s portfolio spans major global franchises alongside smaller development projects, and analysts warn that private ownership could place greater pressure on maintaining profitability across its diverse range of studios and titles

The deal reflects a growing trend of major investment funds seeking opportunities in the global gaming sector, which has become one of the world’s most valuable entertainment industries.

By Nazrin Sadigova