Saudi Arabia Buys EA in a Major $55 Billion Deal
Electronic Arts (EA), one of the biggest video game makers in the world, is being bought in a massive $55 billion deal. The purchase takes EA off the stock market and into private hands, showing just how valuable video game franchises have become across the entertainment world.
The new owners are Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners, which is run by Jared Kushner. Together, they will pay $210 per share to buy out EA’s stockholders. It’s the largest leveraged buyout ever, meaning most of the money for the deal is coming from loans that EA itself will now have to help repay.
Why EA is being sold
The gaming industry has slowed since its pandemic peak. With players spending less due to rising costs and turning to indie studios like Team Cherry and Sandfall Interactive, larger publishers such as EA are under pressure to find new ways to grow. The new owners view this as a chance to take EA’s most popular franchises, including Battlefield, The Sims, Apex Legends, and EA Sports FC, and expand them into television, movies, and other media.
Recent hits like HBO’s The Last of Us, Amazon’s Fallout, and The Super Mario Bros. Movie have proven that game adaptations can succeed with mainstream audiences. EA has already started down this road, teaming up with Amazon’s MGM Studios to produce a film based on The Sims.
What “going private” means for EA
For everyday gamers, the buyout won’t change things overnight. Games already in development will continue as planned. In the long run, though, being a private company means EA no longer has to report earnings every few months to Wall Street. That gives the company more room to plan ahead and take risks on new ideas. At the same time, some people worry that foreign ownership could shape the kinds of stories EA tells, raising questions about whether future games might reflect a foreign country’s values or narrative.
On the other hand, the debt from this buyout puts more pressure on EA’s biggest titles to deliver steady profits. Franchises like Battlefield, The Sims, and EA Sports FC will be expected to keep money flowing, especially through live-service models where players pay for updates, add-ons, and in-game items over time.
What players should expect
Industry experts warn that private equity owners often cut costs and double down on sure bets. That could mean more focus on established blockbusters and fewer smaller or experimental projects. While players may enjoy bigger crossovers and more polished live-service games, there’s a risk that variety and creativity could take a back seat.
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