Electronic Arts acquired by Saudi wealth fund and investor consortium in $55 billion deal
Video game maker Electronic Arts (EA), the company behind popular franchises including The Sims, Madden NFL and Battlefield, has been acquired by Saudi Arabia’s Public
Video game maker Electronic Arts (EA), the company behind popular franchises including The Sims, Madden NFL and Battlefield, has been acquired by Saudi Arabia’s Public Investment Fund (PIF) and a consortium of investors in a deal valued at $55 billion (£41 billion). The transaction was completed on Tuesday, shortly after the company received final regulatory approval from the European Union, clearing the last major hurdle for the acquisition. Electronic Arts, widely recognised for its hit sports titles such as EA Sports FC, formerly known as FIFA, will become a privately held company, ending its 36-year run as a publicly listed firm. The acquisition ranks among the largest buyouts ever completed in the gaming industry.
The investor group includes Saudi Arabia’s PIF, Affinity Partners— the private equity firm led by Jared Kushner, son-in-law of US President Donald Trump — and private equity investor Silver Lake Partners. “EA has created stories, characters, and communities that have become part of everyday life for hundreds of millions of people,” Kushner said. “We’re excited to support the company as it continues to reach new audiences, inspire the next generation of creators, and expand the ways people around the world connect through play.” Saudi Arabia expands investments in gaming and entertainment Saudi Arabia has steadily expanded its investments in gaming, esports, sports, media and entertainment in recent years. Crown Prince Mohammed bin Salman, known as an avid gamer, has been a driving force behind the kingdom’s push into the global gaming sector.
Founded in 1982 by former Apple employee William “Trip” Hawkins, EA grew into one of the world’s leading game developers. Hawkins developed an early interest in sports simulation games during his teenage years, playing Strat-O-Matic tabletop titles. The company has been led by Chief Executive Andrew Wilson since 2013. While EA continues to enjoy a loyal global player base, its annual revenue has remained largely flat in recent years, ranging between $7.4 billion and $7.6 billion. The company has also faced mounting competition from rivals in the gaming industry, including Epic Games. Meanwhile, competitor Activision Blizzard was acquired by Microsoft in a nearly $69 billion deal in 2023. As a private company, EA will no longer have to disclose quarterly financial results, reducing the pressure associated with meeting short-term earnings expectations, a factor many analysts believe allows companies to focus more on long-term strategy.
The BriefWire