Saudi-led group completes $55bn purchase of gaming giant EA

An investment group, including Saudi Arabia's Public Investment Fund (PIF), has successfully completed the acquisition of gaming giant Electronic Arts (EA) for $55 billion. EA, known for popular games like Fifa, The Sims, and Mass Effect, is now being taken private, which means all its public shares will be purchased and it will no longer be traded on a stock exchange.

The investors, led by Affinity Partners - including President Donald Trump's son-in-law, Jared Kushner - are taking a significant portion of the deal in debt. PIF needs to borrow $20 billion from investment bankers JPMorgan to finalize the purchase. The remaining $36 billion has already been invested by PIF.

The $55 billion acquisition has raised concerns among gamers and industry analysts about the potential impact on EA's future. Some worry that the new ownership could lead to layoffs, aggressive monetization, and a reduction in the breadth of EA's game catalog. Christopher Dring, editor-in-chief of the Game Business, believes that the private equity firm will have a "very hands-on approach" in managing the company.

EA's CEO, Andrew Wilson, remains at the helm and expressed optimism about the company's future, stating, "I am more energized than ever about the future we are building." The deal has also sparked debate about Saudi Arabia's motivations for investing in EA. George Osborn, journalist and author, suggests that the PIF sees EA as a "soft power asset" with significant influence in the sporting community, given its role in the world of sports.

The acquisition adds to Saudi Arabia's growing influence in the gaming industry, following the £300 million takeover of Premier League club Newcastle United and the purchase of four football clubs in the Saudi League. Critics argue that such investments could be used to promote Saudi Arabia's image and distract attention from its human rights issues, a practice known as "sportswashing."