Saudi-Backed Buyout of EA: Why It Matters Globally

A Historic Deal in Gaming

A Historic Deal in Gaming. In 2025 the world of gaming was shocked when Electronic Arts (EA) was to be taken private in an acquisition led by the Saudi Public Investment Fund (PIF) and private equity partners.

Considered the largest leveraged buyout in the gaming industry, the acquisition is valued at $55 billion. EA’s shareholders will be given $210 per share in cash and the Saudi fund will be allowed to convert their 9.9% stake into the new ownership structure.

This is an unprecedented financial acquisition in the gaming industry and it’s consequences will be felt globally.

Why Saudi Arabia Stepped In

Saudi Arabia’s influence in the acquisition is indicative of its intent to develop its gaming and entertainment industry to accompany the country’s oil reliance.

With the PIF and their Savvy subsidiary, Saudi has already invested in several gaming studios and esports companies, however, EA provides a powerful industry influence.

The country’s oil reliance. With the PIF and their Savvy subsidiary, Saudi has already invested in several gaming studios and esports companies, however, EA provides a powerful industry influence.

In addition to the business connotations, the country’s international influence and reputation is just as vulnerable. Some analysts have referred to the investments as “gameswashing.”

This term describes the practice of large entertainment investments being used to improve perceptions of a country in the global landscape.

The Mechanics of the Deal

The acquisition is organized as a leveraged buyout, so a lot of the purchase will be financed via debt issuance.

The consortium contributing about $36 billion in equity, and getting about $20 billion in debt financing from the deal that is led by JPMorgan.

Since PIF already owned nearly 10% of EA, that investment will now become a part of the new company, instead of cashing out.

The deal is awaited for regulatory approvals and shareholder votes, and the closing is estimated by mid 2026 to early 2027. If and when this possibility is explored, this would be the largest buyout in the gaming industry.

What Is Not Widely Known

A lesser-talked-about aspect is that this movement aligns nicely with Saudi's long-term gaming plans. Savvy Games Group owns stakes in companies such as ESL and Scopely, which means that EA is not a leap for them, but rather logical evolution of a broader strategy.

As mention, one risk that comes with this acquisition is that it is a large deal. With a large debt, EA would be pressuring itself for stronger returns, and this would lead to laying off and cutting costs, or having influence on the EA creative direction.

Before thought challenging sentiments, there has been criticism of censorship, cultural influence, and exercising how much of an artist direction EA could exercise since PIF would be backing them.

What This Means for Gamers and the Industry

EA assured players that the organization’s values and creative direction would not change. However, many people still have hesitations, particularly fans of inclusive titles like The Sims, who are concerned about whether there will be limits to the content EA will be able to publish moving forward.

At an industry level, this acquisition marks a turning point where state wealth funds are taking significant roles in consolidating the gaming industry, a market that was previously dominated by publishers and private equity.

However, being private may also relieve EA from the ongoing burden of quarterly earnings. With the lack of pressure to generate consistent earnings, this may enable EA to take a reduced risk and invest in long-term creative-work that offers innovative ideas.

Final Thoughts

The Saudi-backed acquisition of EA is more than a business decision to invest in gaming. The Saudi-backed acquisition of EA is a strategic financial and cultural decision that carries political implications far beyond gaming.

While the deal proceeds, the all-important question becomes whether EA will be able to maintain their creative independence, how the players of EA will be impacted and whether EA creates a new template for state wealth funds to invest in art.

Over the next few years, the industry will learn whether this is now the new future of the global gaming industry or merely a footnote in the ongoing story of consolidation and power in the gaming industry.