Video game publisher Electronic Arts has completed its US$55 billion sale to a consortium led by Saudi Arabia's sovereign wealth fund, Silver Lake Partners and Affinity Partners, marking the largest private equity-backed buyout on record.
The California-based company, known for blockbuster franchises including Battlefield, The Sims, Madden NFL and EA Sports FC, announced on August 5 that the acquisition had officially closed. The investor group includes Saudi Arabia's Public Investment Fund (PIF), Silver Lake Partners and Affinity Partners, the investment firm run by Jared Kushner, the son-in-law of U.S. President Donald Trump.
In a statement, Chief Executive Officer Andrew Wilson said EA and its new owners would "invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day."
Turqi Alnowaiser, deputy governor and head of international investments at PIF, said the fund planned to "invest heavily in EA's growth," including through the use of artificial intelligence in game development. PIF had already held a minority stake in EA for the past five years.
Industry analysts have said the move to private ownership could give EA greater freedom to develop and distribute games without the pressures of public markets. Others, however, have pointed to the approximately $20 billion in debt financing used to complete the acquisition, warning it could result in layoffs and other cost-cutting measures.
The deal has also drawn criticism over the involvement of Saudi Arabia and Affinity Partners.
"With this deal, Saudi Arabia and Jared Kushner just bought access to 700 million players worldwide," campaign group #BlockTheEADeal said in an online petition urging regulators to challenge the acquisition. "With the increased use of AI in the creative sector and video games, the potential for data misuse by a Foreign Sovereignty is high and poses significant international security risks."
Kushner defended the acquisition, saying EA had "created stories, characters, and communities that have become part of everyday life for hundreds of millions of people" and that Affinity Partners was "excited to support the company as it continues to reach new audiences."
Human rights groups, including Amnesty International and Human Rights Watch, have also criticized Saudi Arabia's growing investments in sports and esports, accusing the kingdom of using such investments to divert attention from its human rights record.
Following completion of the transaction, EA shareholders will receive $210 in cash for each share they owned, and the company's stock has ceased trading on public markets.
