Saudi Sovereign Fund Completes Historic Buyout of Video Game Giant EA
Redwood City, Wednesday, 5 August 2026.
Saudi Arabia’s Public Investment Fund has finalized its takeover of Electronic Arts in a historic deal, saddling the newly privatized publisher with $20 billion in new debt.
Completion of Privatization
Electronic Arts (EA) officially completed its transition to a private company on 4 August 2026, following a buyout by an investment group that includes Saudi Arabia’s Public Investment Fund and Jared Kushner’s Affinity Partners [1][4]. The transaction removes one of the world’s largest interactive entertainment publishers from public stock exchanges, marking a major milestone in Saudi Arabia’s ongoing initiative to acquire global gaming and technology assets [1][5]. The company will maintain its headquarters in Redwood City, California, under the continued leadership of CEO Andrew Wilson [3][5]. This shift ends EA’s tenure as a publicly traded entity, a status it held for decades prior to this agreement [1][5].
Debt and Deal Structure
The acquisition is valued at $55 billion, structured as the largest leveraged buyout in history [2][3]. Financing for the deal includes $36 billion in equity and $20 billion in debt financing provided by JPMorgan, which will be transferred to EA’s balance sheet [2][3]. This debt load represents 36.364 percent of the total transaction value, creating significant financial obligations for the newly private entity [2][5]. Analysts note that such a high debt ratio often necessitates cost-cutting measures to service the interest and principal repayments over time [2][5].
Strategic and Creative Concerns
Industry observers have expressed concerns regarding potential censorship of Western political themes and LGBTQI+ representation in EA games due to the Saudi-led ownership structure [2][4]. Additionally, there are reports of upcoming cost-cutting measures, including potential layoffs, to manage the substantial debt incurred during privatization [1][2]. Despite these concerns, consortium partners stated their intention to invest heavily in EA’s growth and innovation, including artificial intelligence integration in game development [1][4]. The Public Investment Fund now owns over 93 percent of the company, solidifying its control over EA’s extensive portfolio of intellectual properties [3][4].