Electronic Arts (EA), one of the world’s leading video game companies, is reportedly planning to become a private company in a deal worth around $50 billion. According to the Wall Street Journal, the company is close to an agreement for a leveraged buyout.
The deal would be financed by a group of investors, including the private equity firm Silver Lake and the Saudi Arabian Public Investment Fund (PIF). While details are limited, an official announcement could come as soon as next week.
Saudi Arabia is already heavily invested in gaming
The Public Investment Fund (PIF), backed by Saudi Arabian Crown Prince Mohammed bin Salman, is a significant investor in several major game companies, including Capcom, Embracer Group, and Nintendo. Prince Salman also owns SNK, the publisher of games like Fatal Fury and King of Fighters, through his non-profit organization, the MiSK Foundation.
Salman has been actively working to increase Saudi Arabia’s presence in the global entertainment industry, successfully securing the rights to host the FIFA World Cup in 2034. He also played a key role in the PIF’s acquisition of Newcastle United Football Club in 2021.
However, it’s important to note that the U.S. Central Intelligence Agency reported in 2018 that Salman ordered the assassination of Washington Post journalist Jamal Khashoggi that year. Subsequent reporting by The New York Times in 2019 detailed alleged efforts by the Saudi Arabian government to cover up the killing and destroy evidence.
EA is currently betting big with the next Battlefield
Electronic Arts is preparing to release Battlefield 6 on October 10th, and early signs are promising after a highly popular beta test with over 500,000 players on Steam. While Battlefield is well-regarded, it’s likely not the main reason for recent investment interest, particularly from the Public Investment Fund (PIF).
EA previously published the official FIFA video game series until 2022, and now produces games under the EA FC Sports brand. They also create popular sports titles like Madden NFL and College Football. These games align well with the PIF and Saudi Arabia’s ambitions to grow their influence in sports and entertainment.
Despite the positive outlook for its games, Electronic Arts has faced significant financial challenges this year, resulting in widespread layoffs and project cancellations. Earlier this year, BioWare, the developer of Mass Effect, saw a large number of staff reductions. In April, hundreds more workers were laid off, including those at Respawn Entertainment (Apex Legends, Star Wars Jedi), and a new Titanfall project was scrapped. These cuts continued in May with the cancellation of a Black Panther game and the closure of Cliffhanger Games, a studio comprised of veterans from Monolith Productions.
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2025-09-27 00:39