Saudi Arabian investment fund acquires major game maker EA for over ¥8 trillion, the largest LBO in history
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Electronic Arts (EA), the leading game maker known for titles like
Electronic Arts - EA Announces Agreement to be Acquired by PIF, Silver Lake, and Affinity Partners for $55 Billion
https://news.ea.com/press-releases/press-releases-details/2025/EA-Announces-Agreement-to-be-Acquired-by-PIF-Silver-Lake-and-Affinity-Partners-for-55-Billion/default.aspx
EA acquired by Saudi Arabian investment fund and others for $55 billion — largest ever buyout of a public company | Tom's Hardware
https://www.tomshardware.com/video-games/pc-gaming/ea-acquired-by-saudi-arabian-investment-fund-and-others-for-usd55-billion-largest-ever-buyout-of-a-public-company
EA will be a very different company under private ownership - Ars Technica
https://arstechnica.com/gaming/2025/09/how-private-ownership-will-change-electronic-arts/
It was reported that EA was already in the final stages of negotiations to acquire the company.
Reports that Electronic Arts (EA), the developer of Apex Legends and the FC series, will be acquired for 7.5 trillion yen - GIGAZINE
Through the transaction, the investment consortium will acquire 100% of EA's outstanding shares, and existing shareholders will receive $210 per share in cash, representing a 25% premium to the stock's closing price of $168.32 on September 25, 2025, the last non-market trading day. Following the completion of the acquisition, EA will become a private company and its shares will be delisted.
EA CEO Andrew Wilson expressed his excitement for the future, saying, 'This moment is a powerful recognition of the incredible work our teams have done. Together with our partners, we will create transformative experiences that will inspire the next generation.'
'PIF is uniquely positioned in the global gaming and esports sector, building and supporting an ecosystem that connects fans, developers and IP creators,' said Turki Alnowaisel, Vice President and Head of International Investments at PIF.
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The acquisition will be a leveraged buyout (LBO), which will leave EA with approximately $20 billion in new debt. To repay this debt, EA may resort to layoffs, studio closures, and IP (intellectual property) sales. In such cases, it is expected that studios not involved in profitable franchises such as sports games will be subject to layoffs and closures.
On the other hand, being private means the company no longer has to worry about quarterly earnings reports, allowing it to prioritize long-term planning over short-term profits.
What is attracting the most attention is that Saudi Arabia's PIF is involved in the investment consortium that acquired EA.
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This acquisition is significant for Saudi Arabia, which is seeking to make gaming and e-sports its core business. EA's sports-related assets are particularly attractive to Saudi Arabia, as survey results show that 33% of Middle Eastern PC players and 44% of console players prefer sports games. Furthermore, Crown Prince Mohammed bin Salman , who controls PIF, is actively promoting entertainment businesses in Saudi Arabia, and is known for having previously acquired the Japanese game maker SNK .
Ars Technica, an IT news site, warned that Saudi Arabia's involvement in a major US-based game publisher could attract government attention, particularly from the perspective of data privacy. 'Gaming is a Pandora's box of personal information, and we expect the US government to be closely scrutinizing this transaction, not just initially, but on an ongoing basis,' it said.
There are also concerns that Saudi Arabia's strict social norms could affect EA's game content in the future. Economic analyst Michael Hutter said, 'If LGBTQ-friendly elements were removed from a socially liberal game like The Sims out of consideration for Saudi Arabia, that would be the canary in the coal mine in terms of content interference.'
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