EA’s acquisition for $55 billion means they are now $20 billion in debt

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The gaming community has expressed some worry about yet another acquisition by investors from Saudi Arabia. Despite these concerns, this development might actually be positive news for EA.

Following a week of rumors and predictions, it’s now official: Electronic Arts (EA) will be acquired by a group including Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Jared Kushner’s Affinity Partners. The deal is worth around $55 billion.

Even though the deal is very large, people are starting to worry about what will happen to EA. To pay for the purchase, the PIF provided a loan of about $20 billion, but with the requirement that EA become a private company. This means shareholders will receive $210 for each share they own. Before Saudi Arabia’s investment group got involved, the value of each share was $168.32.

Electronic Arts’ CEO, Andrew Wilson, described the deal as “one of the largest and most significant investments ever made in the entertainment industry.” In a public letter, he shared his optimism for what’s to come, emphasizing that the new owners support the company’s goals and employees. He also pointed out their extensive worldwide knowledge of both gaming and entertainment.

Saudi Arabia has been heavily investing in esports and gaming for some time. Back in January 2022, the country’s Public Investment Fund (PIF) bought the ESL FACEIT Group (EFG) through its Savvy Games Group. This move was designed to expand the gaming market for the over 420 million Arabic speakers in the region.

According to Brian Ward, CEO of Savvy Games Group, Savvy Games Group was established by PIF with the goal of fostering the continued expansion of the worldwide gaming and esports sectors and positioning Saudi Arabia as a leading center for both.”

Brian Ward, CEO of Savvy Games Group

Concerns raised over the EA acquisition

Essentially, having a lot of debt can result in job losses. Bloomberg reporter Jason Schreier pointed out that the biggest and most immediate problem will be the new, privately-owned EA being responsible for $20 billion in debt. He explained that this could lead to significant layoffs, more ways to generate revenue, and other ways to reduce spending. This is because of the need to cut costs.

A recent report from the Financial Times, which requires a subscription, also highlighted that the investment group is making a significant bet on artificial intelligence to reduce operating expenses. The report stated, “These investors believe that cost reductions driven by AI will substantially increase EA’s profits in the future,” which supports Jason Schreier’s earlier concerns about potential cost-cutting. Essentially, they expect AI to improve EA’s bottom line considerably.

EA’s new owners are now in control of major gaming titles

In addition to earlier investments such as EFG, the purchase of EA gives PIF, Silver Lake, and Affinity Partners ownership of some of the most popular gaming franchises, including:

  • EA SPORTS (FC, NFL, Madden, College Football, etc.)
  • The Sims
  • Battlefield
  • Need for Speed
  • Apex Legends
  • Plants vs. Zombies

At the beginning of this year, the Public Investment Fund (PIF) also purchased Niantic Inc., the company behind Pokémon Go, for $3.5 billion. They also acquired Scopely Inc., known for Monopoly Go, for $4.9 billion.

Although EA’s announcement highlighted confidence in its employees and management, the company’s direction is still unclear. It’s currently just speculation whether we’ll see job cuts or cost reductions through the use of AI, but the industry is paying close attention. The situation remains fluid.

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2025-10-01 01:41