Electronic Arts (EA) is going private in what analysts describe as the largest leveraged buyout in gaming history, valued at US$55 billion. The deal, which includes US$20 billion in debt financing, is led by Saudi Arabia’s Public Investment Fund (PIF), which already held a 10 per cent stake in EA before the acquisition.
Joost van Dreunen, a professor at New York University’s Stern School of Business and author of SuperJoost Playlist, said the move reflects a growing trend of sovereign capital shaping who controls cultural assets. “This is the second-largest deal in games history—US$50 billion for a mature publisher whose growth engine has stalled,” he explained. “It shows how sovereign capital, not just Big Tech, is now dictating who controls cultural IP. It also highlights how public-market fatigue with slow-growth publishers is pushing them toward privatisation.”
Saudi Arabia’s Crown Prince Mohammed bin Salman has pledged US$38 billion to transform the kingdom into a global gaming hub. Much of that has already been invested in mobile game studios, esports, and equity stakes in major companies. Analysts say the latest purchase underscores the country’s willingness to pay above market rates for high-profile intellectual property, prioritising influence and prestige over financial logic.
Van Dreunen added: “At the centre sits the irrational financial logic that tells you it’s about power, prestige, and staking Saudi Arabia’s claim in American entertainment.”
Growth challenges and opportunities
Industry watchers had long speculated that EA would merge with a larger player. The company previously explored talks with Apple and NBCUniversal in 2022, though deals collapsed over valuation. Disney has also been mentioned as a potential suitor for decades.
EA has struggled to find a breakthrough hit since the launch of Apex Legends in 2019. Flagship titles such as EA Sports FC, Madden NFL, and the return of College Football remain the company’s main revenue drivers. The upcoming Battlefield entry is expected to compete directly with Call of Duty, but its success is far from guaranteed.
“EA’s mobile games business has traditionally underperformed and should be a much larger part of its overall business,” said Piers Harding-Rolls, Games Research Director at Ampere Analysis. He noted that Saudi Arabia’s ownership of mobile developer Scopely could provide new opportunities for EA to strengthen its position in that space.
Daniel Ahmad, Director of Research and Insights at Niko Partners, also highlighted potential synergies. “The deal creates opportunities for Saudi Arabia to strengthen its console and PC presence, and provides EA with an opportunity for synergy with Scopely for ongoing mobile expansion, now that both are under the PIF.”
However, past attempts to adapt EA’s major franchises for mobile have struggled, with Battlefield cancelled, Apex Legends Mobile shut down shortly after launch, and Madden failing to dominate the market.
Impact on employees and the wider industry
Leveraged buyouts often come with significant restructuring. EA currently employs around 15,000 people, but many fear that job cuts are likely to occur. “Leveraged buyouts deposit a large amount of long-term debt on the company being acquired, and an additional US$20 billion of debt will need to be serviced through cutting costs and building more margin from existing businesses,” Harding-Rolls explained.
Analysts are divided on whether EA’s move to private ownership will allow greater creative freedom or lead to further focus on short-term profits. Some suggest the company could use its new position to nurture long-term projects such as Mass Effect, while others warn that debt repayments may force EA to prioritise predictable sports titles and annual sequels.
“EA’s empire is heavy on sports and sprawling studios, so some ‘right-sizing’ is inevitable—expect a sharper split between the sports division and everything else, some studio consolidation, and likely relocation of certain functions to Saudi Arabia,” van Dreunen predicted.
Mat Piscatella, Director of Gaming Research at Circana, urged caution. “I can’t say I know what it all means yet, or what this deal will result in when it comes to EA’s games and studios. I’d hazard even to attempt to speculate at this point.”
While the long-term implications remain uncertain, analysts do not expect major short-term disruptions. Harding-Rolls said the current slate of games should remain unchanged over the next two years, with growth opportunities tied to Battlefield, EA Sports FC—particularly during the 2026 World Cup—and the company’s expansion into mobile gaming.
As the deal is set to close next summer, the future of one of gaming’s most prominent publishers now rests on how Saudi Arabia balances its ambitions with the realities of a debt-heavy buyout.
