Electronic Arts Officially Goes Private in $55 Billion Saudi-Led Leveraged Buyout

Gaming titan Electronic Arts (EA) has officially completed its transition from a publicly traded company into a privately held entity following the closure of a record-setting $55 billion buyout.

The acquisition, which was first announced in September 2025, places the publisher behind major franchises like EA Sports FC, The Sims, Mass Effect, and Battlefield under the control of an investor consortium. Saudi Arabia’s sovereign Public Investment Fund (PIF) takes the lion's share, owning 93.4% of the business. The remaining ownership is divided between Silicon Valley private equity firm Silver Lake Partners (5.5%) and Affinity Partners (1.1%), an American investment firm established by Jared Kushner, son-in-law to US President Donald Trump.

Ranking as the largest leveraged buyout in global business history, the deal required the consortium to secure $20 billion in debt financing provided by investment bank JPMorgan Chase, alongside $36 billion in equity. Because the massive debt load must be serviced directly by EA's business operations, financial analysts and industry observers have raised concerns regarding potential future cost-cutting.

Industry commentators suggest that servicing this leverage could force the publisher to lean heavily on safe bets rather than creative risks.

Bloomberg reporter Jason Schreier noted that the financial structure could trigger "mass layoffs, more aggressive monetization, and other big cost-cutting measures" across the company's development teams.

"Private equity firms are typically aggressive in their management of companies," explained Christopher Dring, editor-in-chief and co-founder of the Game Business, anticipating "a very hands-on approach from the investment group."

Shams Jorjani, CEO of independent developer Arrowhead Game Studios, also weighed in on EA's vast intellectual property library: "This deal is consolidation, no question - and I wonder whether new ownership optimises for the safe bet - more sequels, more mega-franchises - over that breadth. I'm hopeful this leads to more of that range, not less, but if it turns EA into a sequel-and-mega-franchise machine, that's a real waste of one of the best catalogues in the industry."

Despite going private after 36 years as a public stock, corporate leadership remains intact. Andrew Wilson continues as EA's Chairman and Chief Executive, maintaining the company's primary headquarters in Redwood City, California.

"This moment recognizes the extraordinary people whose creativity, ambition and passion have made EA one of the world's leading interactive entertainment companies," Wilson stated. 

"We're entering this next chapter from a position of strength with partners who share our vision and ambition. Together, we'll invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day."

From the investor side, Saudi officials highlighted the acquisition as a central component of their broader economic and cultural initiatives.

“Having been a minority investor in the company for more than five years, we have a deep understanding of EA's unique platform, massive global sports and gaming franchises, and iconic IP,” said Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF. 

“Entertainment and sports are key areas of strategic focus for PIF, and are among the fastest growing and evolving sectors around the world. Together, the Consortium is uniquely positioned to be a long-term partner to EA's management team in driving sustained growth and innovation for EA and the industry.”

The Ownership Breakdown

The transaction has stirred strong reactions among fans and human rights groups over Saudi Arabia's stance on political dissent and LGBTQ+ rights, sparking fears that creative freedom could be restricted in inclusive games like The Sims. Advocacy campaign Players Alliance HQ has organized public petitions, voicing concern that "creative decisions could be influenced by these outside factors, leading to themes such as free speech, gender, LGBTQI+ and other aspects of Western politics being reduced or fully censored across major franchises."

Media and political analysts further view the move through the lens of global influence and sports branding. George Osborn, author of Power Play: Video Games, Politics and the Battle for Global Influence, noted that the acquisition offers the Saudi government massive reach into global sports culture.

"If the PIF's football strategy limited them to ownership of Newcastle United and some Saudi Pro League teams, owning EA hands them a relationship with the 20,000 players, 750 clubs and 35 leagues at the top of the professional game," Osborn observed. 

"What is clear is that a state seeking to shape perceptions now owns an asset with proven reach to billions of people. How it uses it in the years to come is something we should watch closely."