Saudi Arabia to own 93 percent of EA after acquisition

After games giant Electronic Arts (EA) announced in September that it would go private in a massive $55 billion buyout, a “consortium” comprising three investment groups was named the company’s new ownership group.  While the firms involved — Saudi Arabia’s Public Investment Fund (PIF), Jared Kushner-led Affinity Partners, and Silver Lake — have not disclosed their respective investments, one report from the Wall Street Journal suggests the Saudi PIF is throwing a lot more money at Electronic Arts than previously speculated.

The new WSJ report cites a November filing with Brazil’s antitrust regulator; if the acquisition is approved, the Saudi PIF will own about 93.4% of EA, leaving Affinity Partners and Silver Lake with 5.5% and 1.1% stakes, respectively.

Buyout Details

The gargantuan Electronic Arts acquisition is already the largest-ever leveraged buyout, but the investment groups are borrowing a staggering amount of money to make it happen.  According to the Wall Street Journal’s report, the groups will invest $36.4 billion in equity while borrowing about $20 billion. The Saudi PIF will incorporate its existing $5.2 billion EA holding into the final figures and will invest an additional $29 billion to secure its 94 percent stake.

Despite substantial (albeit incongruous) investments across the board, Electronic Arts says it will remain committed to the gaming community and its loyal fan base. EA addressed player and industry concerns in its recently edited FAQ, saying the company will “maintain creative control, and our track record of creative freedom and player-first values will remain intact.” The post continues: “Our mission, values, and commitment to players and fans around the world remain unchanged. We will continue to be guided by our cultural values of creativity, pioneering, passion, determination, learning, and teamwork.”

Saudi Entertainment Investments

Gamers and industry experts have expressed concerns about the EA buyout since news first circulated. Alongside concerns about monopolization, political interference, and conflicts of interest, investments from the PIF and Affinity Partners — run by Saudi Prince Mohammed bin Salman and President Donald Trump’s son-in-law, Jared Kushner — also fuel concerns about company-wide creative and cultural shifts. 

The pending EA acquisition isn’t Saudi Arabia’s first colossal investment in global entertainment. The Public Investment Fund holds stakes in other major gaming brands, including Activision Blizzard, Capcom, and Nintendo. Established Saudi gaming and entertainment brands are also scooping up the competition; in March, Saudi-owned mobile game label Scopely bought Pokémon GO maker Niantic for over $3 billion. Scopely, first established in 2011, has been a subsidiary of Saudi Arabia’s Public Investment Fund since 2023.

Some vocal opponents also claim Saudi Arabia is engaging in “sportswashing,” a term used to describe any one group’s attempt to sanitize its image by acquiring prominent entertainment fixtures. Through involvement in popular and high-profile sporting events, ownership groups can shape public perception, diversify their investments, and divert collective attention from controversy.

It’s worth noting that the PIF is led by Prince Mohammed bin Salman, a leader accused of myriad human rights violations. In 2019, the United Nations (UN) released a report saying “the state of the Kingdom of Saudi Arabia is responsible” for the death of journalist and vocal government critic, Jamal Khashoggi. Saudi Arabia denies involvement.

Follow us on MSN for more content you love.