Electronic Arts Acquired by Saudi Wealth Fund and Partners

Electronic Arts, a major player in the video game industry, has officially been acquired by new owners. The California-based company, known for popular titles like Battlefield and The Sims, announced on Tuesday that it has finalized a $55 billion sale of its business. The purchasers are Saudi Arabia’s sovereign wealth fund PIF, Silver Lake Partners, and Affinity Partners, led by Jared Kushner, son-in-law of former U.S. President Donald Trump.

The transaction marks the largest buyout ever funded by private equity and is expected to bring significant changes to the gaming landscape. EA’s CEO, Andrew Wilson, stated that the new ownership would drive bold investments, accelerate innovation, and develop the next generation of games for millions of players globally. Turqi Alnowaiser from PIF, which previously held a minority stake in EA, also expressed plans to heavily invest in EA’s growth, highlighting the use of artificial intelligence in game development.

There is speculation that this new structure may provide EA with greater flexibility in game development and distribution, free from the public market’s constraints. However, concerns exist about the $20 billion in debt financing associated with the deal, which may lead to layoffs and cost-cutting measures.

Critics are scrutinizing the new ownership, especially the involvement of Saudi Arabia’s PIF and Kushner’s Affinity Partners. The U.K.-based campaign #BlockTheEADeal cited the deal as a means for these entities to gain access to 700 million players worldwide, raising concerns about potential data misuse.

Kushner emphasized that EA has crafted beloved stories and communities, expressing Affinity’s enthusiasm to help the company reach wider audiences. Still, organizations like Amnesty International and Human Rights Watch have criticized Saudi Arabia’s investments in sports and esports, accusing them of ‘sportswashing’ to divert attention from human rights issues.

PIF has been expanding its influence in the gaming sector over the years. It also holds minority stakes in Nintendo and has a substantial esports portfolio, including platforms like ESL FACEIT. The acquisition means that EA’s titles such as Madden NFL and EA Sports FC (formerly FIFA) now fall under this expanding umbrella.

Following the completion of this transaction, EA stockholders will receive $210 per share in cash, and the company’s stock is no longer publicly traded.