Electronic Arts is no longer a publicly traded company after the completion of its $55 billion acquisition by PIF, Silver Lake, and Affinity Partners. Saudi Arabia’s sovereign wealth fund now owns 93.4% of the publisher, giving it more influence over the video game industry than ever before.
One of the most important companies in video game history has officially changed hands. Nearly a year has passed since Electronic Arts accepted a joint offer from Saudi Arabia’s Public Investment Fund, commonly known as PIF, Silver Lake, and Affinity Partners, and the record-setting transaction has now successfully closed.
The acquisition, valued at approximately $55 billion, has removed Electronic Arts from the stock market and transformed it into a privately owned company. PIF controls 93.4% of the business, while Silver Lake and Affinity Partners share the remaining ownership.
3DJuegos also points out that Affinity Partners and other participants in the transaction have several connections to the Saudi government led by Mohammed bin Salman. Saudi Arabia and its leadership have faced years of international criticism over human rights, social inequality, and several major political controversies.
What Could the New Ownership Mean for EA?
Players probably will not notice the immediate effects of the ownership change. Saudi investors have generally maintained continuity at companies they previously acquired while publicly supporting certain progressive initiatives abroad. Those efforts have included support for women’s soccer in England and women’s esports competitions, even as serious equality concerns remain inside Saudi Arabia.
A greater potential risk comes from the substantial debt used to finance part of the transaction. Investors reportedly supplied approximately $18 billion to $20 billion in debt financing, which could eventually increase pressure on the company to improve profitability.
EA executives already said in March that they planned to improve organizational efficiency and reduce annual expenses by $170 million. In practical terms, that could include layoffs, additional restructuring, more aggressive monetization, and a greater focus on franchises with the highest profit margins, although some of those processes had already begun before the acquisition.
Saudi Arabia’s growing influence throughout the video game industry also raises important long-term questions. Beyond Electronic Arts, PIF has interests in Scopely, SNK, Niantic’s gaming division, and the ESL FACEIT Group, while holding substantial minority stakes in companies including Nintendo, Take-Two Interactive, Koei Tecmo, Embracer Group, Nexon, and Capcom.
Saudi investors have also developed relationships with Microsoft and Ubisoft and completed a $6 billion deal to acquire mobile game developer Moonton Games. EA’s first major decisions under its new ownership will therefore be worth watching, particularly because previous industry acquisitions have frequently been followed by layoffs, studio closures, or reduced investment in smaller projects.
Source: 3DJuegos
