Electronic Arts, the creator of well-known games such as Madden NFL, Battlefield, and The Sims, is about to be acquired by a group of investors in what will be the biggest buyout deal ever financed by private equity.
The agreement is worth $55 billion and involves Saudi Arabia’s sovereign wealth fund, Silver Lake Partners, and Affinity Partners – a firm led by Jared Kushner, the son-in-law of President Donald Trump. EA stockholders will get $210 for each share they own. This is a significant transaction and is expected to close quickly. Details are still emerging, but the key players have all committed to the deal.
The Saudi Public Investment Fund (PIF), which is already the biggest single investor in EA, will maintain its 9.9% ownership in the company.
Andrew Marok at Raymond James notes that the Public Investment Fund (PIF) started investing in gaming in 2022, acquiring ownership in leading companies and purchasing businesses such as ESL, FACEIT, and Scopely. “PIF wants to significantly grow its gaming division, Savvy Gaming Group, and acquiring EA would be its largest step in that direction by far,” Marok explained.
This agreement comes after news of the acquisition leaked last week and is projected to be finalized in early 2027, subject to approval from both shareholders and regulators. Electronic Arts (EA) CEO Andrew Wilson will continue in his current position for now. It’s business as usual, at least for the immediate future. We’ll keep you updated as things progress.
According to the Financial Times, the company’s new owners intend to leverage artificial intelligence to reduce expenses and address EA’s debt.
The future may see AI taking on more tasks in game creation, which could lead to fewer jobs for some developers and performers, although the specifics are still unknown. This development follows closely after the creation of the United Videogame Workers Union, which was formed, in part, because of concerns about AI and the recent job cuts happening within the gaming world. It’s a rapidly evolving situation.
According to the Financial Times, investors believe that reducing costs with AI will greatly improve EA’s profits in the future. They also explained that the acquisition is “a significant gamble on artificial intelligence’s ability to substantially lower EA’s operating expenses, which will help the group of investors handle the large amount of debt the company will have, as EA traditionally hasn’t had much debt.”
Electronic Arts (EA) is already using generative AI, thanks to its Search for Extraordinary Experiences Division. In May 2024, CEO Andrew Wilson explained that AI is speeding up and improving how games are made. “We’ve gone from taking six months to build stadiums in our games to just six weeks,” he noted, specifically referencing their sports titles. He also stated that AI allows developers to “focus on the most enjoyable parts of development sooner.”
While improving efficiency is important, it doesn’t necessarily guarantee job security. EA has already downsized its team in recent years, initially reducing its workforce by roughly 5%-about 670 employees-in 2024. They later eliminated another 300 positions and closed one of their newer studios. This demonstrates that efficiency measures can lead to job losses. It’s a complex situation with trade-offs.
The acquisition led by Saudi Arabia also brings up concerns about how employees might be impacted working for investors from a country with a questionable human rights history. Getting official approval could take a long time, much like Microsoft’s purchase of Activision Blizzard, which was reviewed by the U.S. Federal Trade Commission for several years.
Game creators at EA could see significant shifts in the coming years. This is because artificial intelligence (AI) is playing an increasingly important role in how games are made, and the company is transitioning to being privately owned. These two factors could reshape the development process.
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2025-10-01 10:15