- Saudi Arabia’s PIF-led consortium acquired Electronic Arts for $55 billion.
- This major acquisition signifies Saudi Arabia’s expanding gaming investment.
- EA’s flattening revenue and industry consolidation drove the acquisition.
Saudi Arabia’s investment drive into global entertainment has taken another significant step with the $55 billion acquisition of Electronic Arts (EA), one of the world’s largest video game publishers. The deal, completed after securing final approval from the European Union, hands control of the company behind EA Sports FC, The Sims, Madden NFL and Battlefield to a consortium led by the kingdom’s Public Investment Fund (PIF).
The acquisition is one of the biggest buyouts the gaming industry has witnessed and comes as publishers navigate slowing growth, changing consumer preferences and intensifying competition. It also underlines Saudi Arabia’s ambition to become a major force in the global gaming and esports ecosystem, extending an investment strategy that has already transformed its presence in football, golf, motorsport and other sports.
Saudi Arabia’s Expanding Investment Portfolio
The Public Investment Fund has steadily increased its exposure to the gaming sector in recent years, viewing interactive entertainment as a strategic growth industry alongside sports, tourism and media.
The acquisition of EA represents one of its largest bets yet, bringing one of gaming’s most established publishers under private ownership.
The investor group also includes Affinity Partners, the investment firm founded by Jared Kushner, and private equity firm Silver Lake Partners, reported Guardian.
Commenting on the acquisition, Kushner said EA’s games had become part of everyday life for hundreds of millions of players around the world, adding that the investors see opportunities to help the company reach new audiences and broaden the ways people engage with its franchises.
Why EA Became A Takeover Target
The acquisition comes at a time when Electronic Arts remains one of the industry’s biggest names but is operating in a far more competitive environment than it did a decade ago.
Founded in 1982 by former Apple employee William “Trip” Hawkins, EA built its reputation through blockbuster franchises spanning football, racing, simulation and action games. Its annual sports titles remain among the best-selling games globally, while franchises such as The Sims and Battlefield continue to command large player communities.
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Despite that portfolio, the company’s financial performance has flattened in recent years.
Annual revenues have largely remained between $7.4 billion and $7.6 billion, while competition has intensified as mobile gaming, live-service titles and free-to-play games reshape the market. More recently, EA reported lower-than-expected quarterly revenue, attributing the performance to weaker engagement with its latest Battlefield title.
The deal also comes amid wider consolidation across the gaming industry. In 2023, Microsoft completed its nearly $69 billion acquisition of Activision Blizzard, signalling that publishers with globally recognised intellectual property continue to attract significant investor interest.
What Changes Now?
The transaction ends EA’s 36-year run as a publicly traded company.
As a privately owned business, EA will no longer be required to publish quarterly earnings or face the regular scrutiny associated with public markets. Analysts have often argued that private ownership can give companies greater flexibility to focus on long-term investments instead of short-term financial targets.
At the same time, private equity acquisitions frequently bring operational reviews and cost rationalisation. While there has been no indication that the new owners plan restructuring, EA has already undertaken workforce reductions in recent years. The company laid off around 5 per cent of its employees in 2024, followed by several hundred more job cuts in May, despite employing approximately 14,500 people as of March 2025.
A Deal That Reflects A Changing Industry
Beyond the ownership change, the acquisition highlights how the global gaming business is evolving.
Large publishers are increasingly becoming acquisition targets as investors seek established franchises capable of generating recurring revenue across consoles, PCs and online platforms. At the same time, governments and sovereign wealth funds are expanding their investments in gaming, recognising its growing economic and cultural influence.
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