News
December 03, 2025
Sounds Like Saudi Arabia Will Own Almost All of EA After Buyout
And the publisher will be saddled with debt.EA will be acquired by a consortium including Saudi Arabia’s Public Investment Fund, alongside US-based investment firms Silver Lake and Affinity Partners. This much we already know.However, an exclusive report from the Wall Street Journal (paywalled) reveals just how much each company will be contributing to the deal, with the PIF said to own 93.4% of the publisher once the deal closes. Silver Lake and Affinity Partners will take 5.5% and 1.1% stakes respectively.Read the full article on pushsquare.com
**Saudi Arabia Poised to Become Majority Owner of EA in Massive Buyout Deal**
Electronic Arts, the gaming giant behind blockbuster franchises like FIFA, Madden, and The Sims, is on the verge of a monumental shift in ownership. A consortium led by Saudi Arabia’s Public Investment Fund (PIF) is set to acquire the publisher, a move that could reshape the future of the company and the wider gaming landscape.
While details of the acquisition have been circulating, a recent report from The Wall Street Journal sheds light on the specific stakes each party will hold. The report indicates that the PIF is poised to become the dominant shareholder, controlling a staggering 93.4% of EA once the deal is finalized. This would give the Saudi Arabian sovereign wealth fund significant influence over the direction of the company, including its strategic decisions, game development, and overall business operations.
The remaining ownership will be split between two US-based investment firms. Silver Lake, a well-known technology investment firm, is expected to take a 5.5% stake in EA. Affinity Partners, another investment firm, will hold a smaller 1.1% stake.
The acquisition, while potentially lucrative for EA shareholders, also comes with a caveat: the publisher is expected to be saddled with debt as a result of the deal. The exact amount of debt has not been publicly disclosed, but it's a factor that could impact EA's future investments and its ability to innovate.
The implications of Saudi Arabia's potential majority ownership of EA are far-reaching. It raises questions about the future of creative freedom within the company and the potential influence of Saudi Arabian cultural values on the content of EA's games. The move also underscores the growing role of sovereign wealth funds in the global gaming industry, as these funds seek to diversify their investments and capitalize on the booming market for interactive entertainment.
Industry observers will be closely watching how this deal unfolds and the impact it has on EA's operations, its employees, and the games it produces. The acquisition represents a significant turning point for one of the world's largest video game publishers and a potential harbinger of further shifts in the industry's power dynamics.
Electronic Arts, the gaming giant behind blockbuster franchises like FIFA, Madden, and The Sims, is on the verge of a monumental shift in ownership. A consortium led by Saudi Arabia’s Public Investment Fund (PIF) is set to acquire the publisher, a move that could reshape the future of the company and the wider gaming landscape.
While details of the acquisition have been circulating, a recent report from The Wall Street Journal sheds light on the specific stakes each party will hold. The report indicates that the PIF is poised to become the dominant shareholder, controlling a staggering 93.4% of EA once the deal is finalized. This would give the Saudi Arabian sovereign wealth fund significant influence over the direction of the company, including its strategic decisions, game development, and overall business operations.
The remaining ownership will be split between two US-based investment firms. Silver Lake, a well-known technology investment firm, is expected to take a 5.5% stake in EA. Affinity Partners, another investment firm, will hold a smaller 1.1% stake.
The acquisition, while potentially lucrative for EA shareholders, also comes with a caveat: the publisher is expected to be saddled with debt as a result of the deal. The exact amount of debt has not been publicly disclosed, but it's a factor that could impact EA's future investments and its ability to innovate.
The implications of Saudi Arabia's potential majority ownership of EA are far-reaching. It raises questions about the future of creative freedom within the company and the potential influence of Saudi Arabian cultural values on the content of EA's games. The move also underscores the growing role of sovereign wealth funds in the global gaming industry, as these funds seek to diversify their investments and capitalize on the booming market for interactive entertainment.
Industry observers will be closely watching how this deal unfolds and the impact it has on EA's operations, its employees, and the games it produces. The acquisition represents a significant turning point for one of the world's largest video game publishers and a potential harbinger of further shifts in the industry's power dynamics.
Category:
Technology