Saudi Arabia has sealed a massive $55 billion deal to buy Electronic Arts, the maker of popular games like EA Sports FC and The Sims. This move, led by the kingdom’s Public Investment Fund, marks the largest buyout in history and boosts Saudi Arabia’s push into the global gaming world.
Details of the Historic Acquisition
Saudi Arabia’s Public Investment Fund teamed up with Silver Lake and Affinity Partners to acquire Electronic Arts in an all-cash deal valued at $55 billion. The agreement gives shareholders $210 per share, a 25 percent premium over the recent stock price.
This transaction stands as the biggest leveraged buyout ever, with the consortium taking Electronic Arts private. The deal closed in late September 2025, positioning Saudi Arabia as the majority owner.
Electronic Arts, based in California, brings a portfolio of blockbuster titles that generate billions in revenue each year. The acquisition aligns with Saudi Arabia’s Vision 2030 plan to diversify beyond oil.
Industry experts note that this buyout reflects growing investments in entertainment. Saudi Arabia already holds stakes in other gaming firms, expanding its influence.
Saudi Arabia’s Gaming Ambitions Grow
Crown Prince Mohammed bin Salman drives this strategy to make Saudi Arabia a gaming powerhouse. The kingdom plans to pour $38 billion into gaming and esports by 2030.
Recent wins include Team Falcons’ victory at the Esports World Cup in Riyadh, which attracted millions of viewers. The event showcased Saudi Arabia’s commitment to hosting major tournaments.
Saudi Arabia has invested in companies like Nintendo and Capcom. These moves aim to build a complete gaming ecosystem, from development to competitions.
Analysts say gaming offers soft power, helping the kingdom connect with young global audiences. The industry, worth $297 billion in 2025, outpaces movies and music combined.
This acquisition gives Saudi Arabia control over hit franchises that reach millions of players worldwide.
Impact on the Gaming Industry
The deal shakes up the gaming sector, where mergers and investments shape competition. Electronic Arts now falls under Saudi influence, potentially changing how games get made and distributed.
Players worry about creative freedom, given Saudi Arabia’s strict rules on content like violence or relationships. Yet, Electronic Arts leaders promise no changes to core values.
Job impacts loom large, as leveraged buyouts often lead to cost cuts. Electronic Arts has already reduced staff in recent years, turning to AI for efficiency.
On the positive side, fresh funding could fuel innovation in games and technology.
Here are key potential effects on the industry:
- Increased investment in esports events worldwide.
- More focus on mobile and online gaming markets.
- Possible shifts in game themes to match owner preferences.
- Growth in digital commerce for in-game items.
Key Facts About the Deal
| Aspect | Details |
|---|---|
| Deal Value | $55 billion |
| Buyers | Public Investment Fund (majority), Silver Lake, Affinity Partners |
| Share Price | $210 per share (25% premium) |
| Announcement Date | Late September 2025 |
| Enterprise Value | Approximately $55 billion |
| Financing | Includes $20 billion in debt |
This table highlights the core elements of the acquisition.
Criticisms and Challenges Ahead
Critics label this as sportswashing, using gaming to polish Saudi Arabia’s image amid human rights concerns. Groups like Human Rights Watch point to issues with press freedom and other abuses.
Some gamers and developers have boycotted Saudi-backed events. For instance, a pro player turned down a big offer from Team Falcons due to moral reasons.
Geopolitical ties add layers, with Jared Kushner’s firm involved. This could smooth US approvals but raises questions about influence.
Despite backlash, the kingdom presses on, viewing gaming as a path to economic growth and cultural sway.
What This Means for Gamers and the Future
For everyday players, the takeover might bring more resources to favorite games, leading to better updates and new titles. It could also expand esports opportunities in the Middle East.
Looking ahead, Saudi Arabia aims to host more global events and develop local talent. This positions the kingdom as a rival to gaming hubs like the US and Japan.
The deal underscores gaming’s role in modern diplomacy and business. As the industry evolves, watchers will track how ownership affects creativity and ethics.
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