Saudi Arabia deepens gaming push with $55 billion EA takeover

• EA bought for $55 billion by Silver Lake with backing from Saudi Arabia’s PIF.
• Deal gives PIF control in one of gaming sector’s biggest takeovers.

Electronic Arts, the studio behind “Battlefield,” “Madden NFL,” and “EA FC”, is set to change hands in a massive $55 billion takeover. As reported by Reutersthe deal, backed by Saudi Arabia’s Public Investment Fund (PIF) and led by the private equity firm Silver Lake, is one of the largest buyouts in history and signals Saudi Arabia’s deepening push into the global gaming and entertainment sector.

For Silver Lake, the acquisition caps years of interest in EA. For Saudi Arabia, it’s a chance to secure a cultural and commercial asset that fits into its broader ambitions for the gaming industry.

Earlier this year, during a strategy session, Silver Lake executives and Jared Kushner, Donald Trump’s son-in-law and former White House adviser, began shaping the agreement, according to people familiar with the discussions. One source said the talks started between Silver Lake co-CEO Egon Durban and Kushner.

The $55 billion deal was announced on Monday. It will expand Silver Lake’s holdings in gaming, sports, and entertainment while giving PIF a long-term stake in a top gaming company. EA was first approached during the summer, the people said.

PIF will become EA’s majority shareholder, and Kushner’s private equity firm, Affinity Partners, will own 5%, one source said.

Before the deal, PIF already held nearly 10% of EA and had several gaming investments. That made it a natural partner for Silver Lake, the person added. Kushner played a key role in connecting the parties.

Kushner founded his company, Affinity, in 2021 and has received backing from funds in Saudi Arabia, Qatar, and the UAE. In the announcement, he said he grew up playing EA games and still plays them with his children.

Durban called EA a special company and said the group plans to invest heavily to grow the business. EA and the consortium’s spokesperson declined to comment.

Saudi Crown Prince Mohammed bin Salman has said he likes to relax by playing video games with friends and family. He has also laid out plans for Saudi Arabia to become a global hub for games and e-sports by 2030. “Every year we have a 15% to 25% profit so it’s really amazing and we do not want to miss that,” he told Fox News two years ago, referring to PIF’s returns from investments in e-sports tournaments.

“This isn’t just a spreadsheet deal. It’s Saudi Arabia buying time, talent, and cultural clout in one shot,” said Joost van Dreunen, a games professor at New York University’s Stern School of Business. “It puts a trophy IP house at the tip of the Saudi Vision 2030 spear, backed by a government that has earmarked $38 billion for games and sees interactive entertainment as both soft power and long-run monetisation.”

PIF has been pouring money into gaming through its Savvy Games Group for some years. It has invested in major publishers like Activision Blizzard, Nintendo, and Take-Two Interactive as part of the kingdom’s effort to diversify its economy away from oil.

EA’s popular franchises and the chance to build game-making capabilities in Saudi Arabia pushed PIF to increase its investment, one person said.

Saudi Arabia’s e-sports foundation recently announced a new national tournament with EA as a partner. Meanwhile, Qiddiya – PIF’s large entertainment and tourism project in Riyadh – plans to attract 10 million visitors a year to its gaming district by 2030. The site aims to incubate 30 game development companies.

The consortium is investing $36 billion in the EA deal, including PIF’s existing stake, and raising another $20 billion in debt from JPMorgan, EA said Monday.

One source said lenders were willing to finance the buyout because there’s been a shortage of used loan deals recently, with private equity activity slowing down. EA shareholders will receive $210 per share in cash, a 25% premium over the closing price on September 25, before news of the deal surfaced.

Some analysts think the price is too low. “The true earnings power of EA is only beginning to emerge,” Benchmark analysts wrote. The company’s stock had been trading near record highs, according to LSEG data.

The merger agreement gives EA 45 days to consider other offers, but van Dreunen doesn’t expect any to appear. “Matching it would require deep pockets and a high tolerance for scrutiny. A strategic bidder would face antitrust and cultural blow-back, while private equity would struggle to pencil the use,” he said.

The deal still needs regulatory approval, but analysts don’t see major obstacles. “Given today’s broadly constructive Western-Saudi ties, the consortium is more likely to face ‘box-ticking’ reviews and a few raised eyebrows than outright resistance,” said David O’Hara of MKP Advisors. The closing is expected by the second quarter of 2026.

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