EA is bought by Saudi fund in largest leveraged buyout in history

On August 4, 2026, Electronic Arts (EA) became part of a buyer consortium that includes Saudi Arabia's Public Investment Fund (PIF) after the completion of a $55 billion (£41 billion) transaction. The deal ends the company's presence on the stock exchange, as all public shares were acquired.

EA Sale to Saudi Fund Completed

The purchase places EA, known for titles such as EA FC (formerly FIFA), The Sims and Mass Effect, under private control. Among the investors is Affinity Partners, led by Jared Kushner, son-in-law of former President Donald Trump.

How Leveraged Buyout Works

The transaction is regarded as the largest leveraged buyout in history, meaning a large portion of the price was financed with debt. PIF has already contributed $36 billion and had to arrange $20 billion in loans from JPMorgan, debt that will be assumed by EA.

Community Reactions and Content Concerns

Analysts such as Jason Schreier of Bloomberg suggest that the debt burden could lead to mass layoffs, more aggressive monetization strategies, and other cost-cutting measures. Christopher Dring of Game Business warns that the investor group tends to take a very pragmatic approach to managing companies.

EA fans expressed concern, especially regarding games like The Sims, which promote inclusion and LGBT+ relationships. In the buyer's country, consensual same-sex relationships can be punished with death or flogging, according to sharia interpretations.The advocacy group Players Alliance HQ urged gamers to send petitions to local politicians, fearing that the majority of PIF's actions could influence creative decisions and diminish themes such as freedom of expression, gender, and LGBTQI+ rights in EA's franchises.

Motivations of the Saudi Public Fund

PIF, a £514 billion fund used by the Saudi government for diverse investments, already holds stakes in football club Newcastle United and four Saudi League clubs. George Osborn notes that the purchase provides the fund with an attractive financial opportunity, given EA's 35-year longevity and its live-service games that continue generating revenue after release.

Beyond the economic aspect, Osborn points out that EA represents a “soft power” asset embedded in the sports community, expanding PIF's influence in the gaming and sports worlds.

Expected Impacts for the Company and the Market

Despite recent challenges such as layoffs and project cancellations, EA reported revenue of $7.5 billion in the past year. The launch of Battlefield 6 in October sold over 7 million copies in the first three days, setting a franchise record, although it was followed by further layoffs.

CEO Andrew Wilson, who will remain at the helm of the company, reaffirmed the intention to create “transformative experiences to inspire generations”. However, the dominant presence of PIF raises questions about how EA's management strategy and creative direction will be shaped in the coming years.

Observers note that the acquisition reinforces accusations of “sportswashing”, the practice of using sports and entertainment to improve the international image of regimes accused of human-rights violations, as reported in a 2019 UN report on the killing of Jamal Khashoggi.

With information from BBC News.