Last year, Saudi Arabia made waves in the video game industry once again with the largest all-cash sponser take-private investment in history with PIF, Silver Lake, and Affinity Partners acquiring EA for $55B. Now, close to year later, the acquisition is complete.
The PIF (Public Investment Fund) is the sovereign wealth of Saudi Arabia and is reportedly central to the Crown Prince’s goal of making the Saudi economy less reliant on oil. Recently, Saudi Arabia officials said that its investments in the games industry will help modernize the kingdom. However, there has been negative fallout due to the country’s highly cricitized alleged human rights abuses. PIF has billions of stock in other video game companies, such as Take-Two, and owns other companies such as SNK.
“This moment recognizes the extraordinary people whose creativity, ambition and passion have made EA one of the world’s leading interactive entertainment companies,” said Andrew Wilson, Chairman & CEO of Electronic Arts. “We’re entering this next chapter from a position of strength with partners who share our vision and ambition. Together, we’ll invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day.”
“Having been a minority investor in the company for more than five years, we have a deep understanding of EA’s unique platform, massive global sports and gaming franchises, and iconic IP,” said Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF. “Entertainment and sports are key areas of strategic focus for PIF, and are among the fastest-growing and evolving sectors around the world. Together, the Consortium is uniquely positioned to be a long-term partner to EA’s management team in driving sustained growth and innovation for EA and the industry.”
“EA’s franchises are some of the most beloved in entertainment, combining exceptional creative talent with a relentless focus on players,” said Egon Durban, CEO and Managing Partner of Silver Lake. “As long-term investors in technology, we admire how EA’s innovation fuels imagination and human connection. We’re proud to join with PIF and Affinity Partners to invest heavily in EA’s growth, including what AI can do to enhance game development and player experience, and excited to partner with Andrew and the EA team as they raise the bar for fans everywhere.
“EA has created stories, characters, and communities that have become part of everyday life for hundreds of millions of people,” said Jared Kushner, Chief Executive Officer of Affinity Partners. “We’re excited to support the company as it continues to reach new audiences, inspire the next generation of creators, and expand the ways people around the world connect through play.”
EA’s annual Ebitda is around $1.5 billion, which should be enough to service the interest payments. But the publisher has told debt investors that it will cut $700 million in annual costs including $170 million in “organizational efficiencies,” per Bloomberg. In other words: mass layoffs
— Jason Schreier (@jasonschreier.bsky.social) August 4, 2026 at 5:34 PM
Bloomberg’s Jason Schreier noted that because this is the largest leveraged buyout in history, EA will have a total debt of around $18 billion. EA would have to pay around $1.8 billion per year in interest alone. According to Scherier, EA could cover the payments without reducing the debt due to the company’s EBITDA (earnings before interest, taxes, depreciation and amortization) being around $1.5 billion. EA has reportedly told debt investors that they were looking to make cuts to reduce its annual expenses, which could mean yet another round of mass layoffs.