We’re a few days removed from news of Electronic Arts’ (EA) colossal $55 billion private equity buyout, but the record-breaking deal is raising eyebrows inside and outside the industry. From casual players to prominent brand leaders, gamers have taken to social media to share their concerns. Among them, most notably, is Larian Studios head Swen Vincke. The Baldur’s Gate 3 and Divinity director shared an indirect post to X (formerly Twitter) on Thursday. “Probably a good time to remind people that making games faster and cheaper while charging more has never worked before,” he wrote.
Vincke isn’t the only one worried about what the Saudi-Kushner acquisition means for the industry moving forward. The post, already viewed more than 138,000 times, is spurring conversation about business model sustainability and what these changes may mean for workers.
“It’s getting so exhausting seeing people in leadership positions making the same mistakes over and over,” wrote Twitch streamer DansGaming. “The only one that seem to pay for their choices are the employees beneath them.”
About the EA Buyout
On Monday, Sept. 29, EA confirmed via press release that a “consortium” of powerful investors had acquired the brand. The American video game company, perhaps best known for blockbuster franchises like Battlefield, Mass Effect, and The Sims, was founded in the early 1980s.
The buyout means EA will become the private property of the Saudi Arabia Public Investment Fund (PIF), Silver Lake Technology Management, and Jared Kushner-led Affinity Partners. While the deal isn’t expected to close for some time — estimates point to Summer 2026 at the earliest — the buyout would be the largest leveraged buyout in history. The New York Times clarifies that the deal still requires EA shareholder approval as well as that of “the Committee on Foreign Investment in the United States, a panel of government agencies that reviews international deals for security concerns.”
The EA acquisition aligns with the fund’s other entertainment investments; Saudi-owned mobile game label Scopely bought Niantic’s gaming division earlier this year for over $3 billion. The fund holds stakes in additional gaming brands like Nintendo, Activision Blizzard, and Capcom. The PIF has also invested in soccer, WWE, UFC, and stand-up comedy.
The PIF, a sovereign fund valued at nearly $1 trillion, is chaired by Crown Prince Mohammed bin Salman. The controversial leader has been accused of human rights violations by the United Nations (UN), including the death of journalist and outspoken regime critic, Jamal Khashoggi. Saudi Arabia denies involvement.
Follow us on MSN for more content you love.
Leave a Reply
You must be logged in to post a comment.