Video games played by hundreds of millions of people around the world are about to enter a new era. Electronic Arts (EA), the massive gaming company behind hit titles like The Sims, Madden NFL, and EA Sports FC, has been bought for $55 billion by an investor group led by Saudi Arabia's sovereign wealth fund.
The deal officially completed after receiving final regulatory approval from the European Union. The purchase ends EA's 36-year history as a public company traded on the stock exchange. The buying group includes Saudi Arabia's Public Investment Fund (PIF), private equity firm Silver Lake Partners, and Affinity Partners, an investment company led by Jared Kushner.
The transaction is considered the largest leveraged buyout in history. To close the deal, the investor group borrowed $20 billion from investment bankers, a debt that EA itself will now need to repay. Gaming analysts and industry leaders are watching closely to see how this debt will impact the company. Some experts worry the financial pressure could lead to job cuts or push EA to focus on safe sequels and major franchises rather than original games.
The purchase also marks a major step in Saudi Arabia's ongoing effort to expand its reach across global sports, media, and entertainment. PIF already owns England's Newcastle United football club and several teams in the Saudi Pro League, as well as hosting global esports tournaments. While critics view these purchases as an attempt to improve the kingdom's international image, the acquisition puts one of the world's biggest gaming catalogs under Saudi ownership.