Saudi Fund to Own 93.4% of Electronic Arts Following Billion-Dollar Acquisition

Our favorite Goodies

Acquisition Details Reveal Saudi PIF’s Dominant Stake in Electronic Arts at $55 Billion Valuation

New regulatory documents have revealed the extent of Saudi Arabia’s control over Electronic Arts (EA) if the proposed acquisition is approved. According to a Wall Street Journal report, the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, is set to hold a 93.4% stake in EA, marking a significant move by a state-owned fund in the technology and entertainment sector. When the agreement was announced in September, valuing EA at approximately $55 billion, the publisher stated only that it would be acquired by a consortium formed by PIF, Silver Lake, and Affinity Partners, without specifying each party’s share. The new documents submitted to financial authorities expose the complete shareholding structure: PIF will hold 93.4%, Silver Lake Partners will hold 5.5%, and Affinity Partners will hold 1.1%. As a result, PIF will finance the vast majority of the acquisition.

The takeover of Electronic Arts represents one of the largest financing deals in interactive entertainment. It is uncommon for a sovereign wealth fund to take such a large stake in a deal like this. Saudi Arabia already owns nearly all of SNK (around 96%). Besides owning shares in companies like Activision Blizzard and Take-Two, the Saudi Arabian Public Investment Fund also has shares in Nintendo, Capcom, Nexon, and Embracer Group. If the EA acquisition is completed, it would be Saudi Arabia’s most ambitious move yet to expand its presence in the video game industry. The takeover of EA could involve up to $20 billion in loans. With such significant debt, the PIF-controlled EA may focus on aggressive profit strategies, such as cost-cutting, studio sales, or risky ventures into AI in game development.

Unprecedented $29B Investment by Saudi Fund in EA’s Leveraged Buyout under Regulatory Scrutiny

The Wall Street Journal estimates that the fund will need to contribute around $29 billion to reflect its final participation—a sum considered unusual in operations of this type. Sovereign funds typically enter as minority investors, leaving the major share and strategic control to private equity firms. If approved by shareholders, EA’s acquisition would be the largest leveraged buyout in history, reinforcing Saudi Arabia’s significant bet at a time of internal financial pressure. According to Brazilian antitrust filings, Electronic Arts stock will be delisted from public trading exchanges after the acquisition. Silver Lake will hold a 5.5% stake in Electronic Arts, while Affinity Partners will own 1.1%. The buyout is under scrutiny from international regulators, and at least two U.S. senators have voiced concerns about potential national security risks.

Significant Challenges for Saudi PIF amid Human Rights Concerns and Overrun Costs in Megaprojects

Despite holding approximately $1 trillion in assets, PIF has been stretched by billion-dollar megaprojects, including the futuristic city of NEOM, new stadiums for the 2034 World Cup, and other initiatives facing difficulties and budget overruns, according to reports. The New York Times reported last month that PIF may temporarily suspend new investments due to a buildup of critically situated projects, including NEOM, which still has hotels, cruise lines, a coffee network, and electric car startups far from full operation. In recent years, Saudi Arabia has stated that investments in the gaming industry are part of its plan to modernize the economy and diversify income beyond oil. However, this strategy has faced international backlash due to human rights violations associated with the regime. US intelligence identifies Prince Mohammed bin Salman, head of PIF, as responsible for the murder of journalist Jamal Khashoggi. Additionally, Amnesty International reports that the country represses women activists and criminalizes LGBTQ individuals, with punishments including imprisonment, fines, or the death penalty.

Potential Impact of Saudi Arabia’s Acquisition of Electronic Arts on Popular Video Game Franchises

Alberto Navarro at Tecnobits published information on May 12, 2025, stating that the takeover of Electronic Arts by Saudi Arabia’s Public Investment Fund is expected to conclude during the first quarter of the 2027 fiscal year, i.e., between April 1, 2026, and June 30, 2026, assuming there are no prior approvals. The deal would give Saudi Arabia a stronger foothold in the video game industry, leading analysts to question its potential effects on popular franchises and European sports competitions backed by EA Sports. With a massive presence in Europe through sports franchises like LaLiga EA Sports and LaLiga Hypermotion, there is considerable interest in how this move might affect future series such as EA Sports FC, Battlefield, The Sims, Dragon Age, or Need for Speed, as well as the role Saudi Arabia may play in the European competitive and media landscape. The acquisition of Electronic Arts, approved by EA’s board but still requiring approval from shareholders and regulatory bodies, is expected to be finalized between April 1, 2026, and June 30, 2026.

In Case You Missed It

In a recent interview, legendary game director Hideo Kojima discussed his plans to shake up the gaming industry once again, just in time for the 10th anniversary of Kojima Productions. Ahmed Hassan revealed that Kojima intends to push the boundaries between cinema and games even further than before by collaborating with film crew members, not just actors, for his upcoming project Physint Kojima Reveals Plans to Collaborate with Film Crew Members, Not Just Actors, for Physint. Meanwhile, Elden Ring upped its game with an unexpected twist, as Carlos Mendoza took us on a deep dive into the upcoming Nightreign expansion. In “Elden Ring: Nightreign – The Forsaken Hollows Trailer Reveals Sealord,” published December 8th, we got to explore two new playable characters, Sealord and Scholar, battling through the mysterious Great Abyss Elden Ring: Nightreign – The Forsaken Hollows Trailer Reveals Sealord. Lastly, in other gaming news, Sophie Laurent shared exciting updates about Replaced, the cyberpunk pixel-art game that has kept fans on the edge of their seats since 2021. Set in a grimy post-apocalyptic world, this action-platformer from Sad Cat Studios promises an immersive narrative centered around R.E.A.C.H., an AI trapped in a human body, with its unique setting and ambitious storytelling shaping it up to be one of the most anticipated games of 2026. Get all the details here Replaced: The Elusive Cyberpunk Pixel-Art Finally Has a Release Date and New Trailer.