Saudi Arabia’s Public Investment Fund and a group of investors have completed their $55 billion acquisition of video game developer Electronic Arts (EA Sports) after receiving the necessary regulatory approvals. The acquisition is backed by around $36 billion in equity and a further $20 billion in debt.
The consortium is led by Saudi Arabia’s Public Investment Fund alongside private equity firm Silver Lake and Affinity Partners, the investment company founded by Jared Kushner. Under the agreement, PIF will hold a 93.4% stake in EA, while Silver Lake and Affinity Partners will own 5.5% and 1.1% respectively.
The deal is a major push by PIF in its efforts to become a global hub for games and sports, betting on the enduring value of blockbuster game franchises as the industry recovers from a prolonged downturn. It also underscores Saudi Arabia’s diversification from oil into infrastructure, tourism, sports and gaming and other sectors.
Through PIF, the Kingdom has invested heavily in game developers, esports companies and gaming infrastructure as part of its Vision 2030 strategy to diversify the economy beyond oil.
With the deal, PIF takes control of one of the world’s largest video game publishers, with popular franchises including EA Sports FC (FIFA), Madden NFL, Apex Legends, Battlefield and The Sims. EA will leave the Nasdaq after 37 years as a publicly listed company and begin operating as a privately owned business under the Saudi-led consortium.
