EA acquired for $55 billion by Saudis and Trump’s son-in-law
Digital Arts (EA) is being privatized for $55 billion, one of many greatest offers in gaming historical past. The patrons embody Saudi sovereign wealth fund PIF, Jared Kushner’s Affinity Companions, and Silver Lake.
EA confirmed the takeover on September twenty ninth, 2025 in a press launch. Shareholders will obtain $210 per share, a 25 % premium to the present share value (earlier than the rumors).
The deal—financed with $36 billion in fairness (together with PIF’s 9.9 % stake) and a $20 billion mortgage from J.P. Morgan—is anticipated to be accomplished in early 2027 following shareholder and regulatory approval. It’s the costliest leveraged buyout of all time and the second largest gaming deal ever, after Microsoft’s acquisition of Activision-Blizzard for $69 billion.
EA—identified for sport franchises like FIFA, Madden NFL, Battlefield, The Sims, and Want for Velocity—is beneath stress following studio closures and layoffs. Privatization permits for longer growth cycles with out inventory market pressures, explains Selection. CEO Andrew Wilson stays, as do the headquarters in Redwood Metropolis, CA.
Saudis and Trump connections within the background
The PIF, headed by Crown Prince Mohammed bin Salman, diversifies Saudi Arabia past oil. The fund holds stakes in Nintendo, Activision-Blizzard, and Take-Two, and has purchased ESL, FACEIT, and Scopely. “PIF is ideally positioned to drive gaming and esports,” stated Turqi Alnowaiser, PIF’s deputy governor.
Jared Kushner, son-in-law to President Trump and CEO of Affinity Companions, added: “EA creates iconic experiences—I’m excited concerning the future.” The funding firm Silver Lake, with investments in Unity and Dell, rounds off the consortium.
This deal is a supply of controversy for a lot of, although. Saudi Arabia’s extreme human rights violations (e.g., the homicide of Saudi journalist Jamal Khashoggi) and Kushner’s PIF financing ($2 billion) are fueling debate. Nonetheless, Saudi Imaginative and prescient 2030 is driving gaming investments, with an eye fixed on the 2025 Esports World Cup because the spotlight.
Implications for EA and the business
For EA, privatization means freedom to pursue longer growth cycles for video games like FIFA and Battlefield with out quarterly pressures. After reducing prices with tons of of layoffs final 12 months, this deal might convey stability. Certainly, the business is consolidating with Tencent fascinated about Ubisoft and PIF’s actions (9.4 % in EA since 2021, plus 55 % extra since 2023) are shaping the market.
The deal should overcome regulatory hurdles, together with in-depth critiques as a consequence of Saudi participation. Nothing will change for purchasers till 2027 a minimum of. EA stays an enormous, simply now in personal fingers.
For buyers and followers, it might be a big milestone that makes gaming extra world. Nonetheless, as EA has to bear the compensation burden for $20 billion in debt, business specialists anticipate financial savings, restructuring, and presumably additional job cuts.
This text initially appeared on our sister publication PC-WELT and was translated and localized from German.
