On December 23, 2025, Electronic Arts shareholders approved the largest leveraged buyout ever—a $55 billion acquisition led by Saudi Arabia’s Public Investment Fund (PIF). The deal transforms EA from a public American tech giant into a privately-held entity predominantly owned by the Saudi sovereign wealth fund. Here’s what this seismic shift means.
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EA Deal Breakdown: Who Owns What?
| Investor | Ownership Stake | Estimated Investment |
|---|---|---|
| Saudi PIF | 93.4% | ~$29 billion + rollover |
| Silver Lake | 5.5% | Part of $36.4B consortium |
| Affinity Partners | 1.1% | Part of $36.4B consortium |
According to The Wall Street Journal, PIF’s dominance is unusual—sovereign funds typically take minority positions. Here, PIF controls nearly everything.
Why $210 Per Share Matters
Shareholders approved the $210-per-share offer—a 25% premium over EA’s recent trading price. The deal structure includes $36.4 billion from the consortium plus approximately $20 billion in loans, making it the largest all-cash leveraged buyout in history.
PIF isn’t starting from scratch. The fund already owned 9.9% of EA before this deal, accumulated through purchases since 2020. Increasing that stake to 93.4% demonstrates aggressive expansion into Western entertainment.
The Controversy: National Security Concerns
US senators urged “searching scrutiny” of this “unprecedented foreign privatization.” Concerns center on security risks and foreign influence. Critics question whether PIF’s investments genuinely pursue profits or serve to shift public opinion about Saudi Arabia. Affinity Partners—Jared Kushner’s firm—adds political complexity some view as smoothing regulatory approval.
Saudi Arabia’s Gaming Ambitions
This fits Saudi Vision 2030’s diversification strategy. PIF committed $38 billion to gaming, including $1.5 billion for ESL/FACEIT and $4.9 billion for Scopely.
EA’s announcement states CEO Andrew Wilson believes new partners enable “next generation entertainment.” For more analysis, visit our gaming industry insights.
What Happens Next?
Government approval remains the final hurdle. If cleared, EA transitions from quarterly pressures to long-term planning. EA generated $7.5 billion revenue in fiscal 2025, offering stable cash flow.
FAQs About EA’s Saudi Acquisition
Q1: Will EA games change after Saudi PIF ownership?
EA leadership states operations will continue as usual in the United States with existing teams. However, going private removes quarterly earnings pressure, potentially allowing longer development cycles. The cultural impact of Saudi ownership on creative decisions remains uncertain and will unfold over time.
Q2: Can the US government still block this deal?
Yes. Despite shareholder approval, the deal requires regulatory clearance from government bodies including the Committee on Foreign Investment in the United States (CFIUS). Given bipartisan senatorial concerns about national security and foreign influence, scrutiny will be intense before final approval.
