Saudi Arabia’s PIF to take 93% control of EA, regulatory filings confirm
The $55B acquisition raises alarms among unions and activists over human rights concerns.
In a move that could fundamentally reshape the landscape of the video game industry, new regulatory filings indicate that Saudi Arabia’s Public Investment Fund (PIF) is poised to take nearly complete control of Electronic Arts (EA). According to documents submitted to Brazilian antitrust regulators and unearthed by The Wall Street Journal, the PIF will own a staggering 93.4% of the publisher.
This acquisition, originally announced in September with a valuation of $55 billion, involves a consortium of investors, but the ownership split is far from equal. While private equity firm Silver Lake will hold a 5.5% stake, Affinity Partners—the firm founded by Jared Kushner, son-in-law of President Donald Trump—will own just 1.1%.
An unusual deal structure
Industry analysts have noted that this structure is highly unorthodox. Typically, in consortium acquisitions, experienced private equity firms like Silver Lake take the lead in operations and governance, with sovereign wealth funds acting as silent, minority investors to provide capital. In this case, the dynamic is flipped: the Saudi sovereign wealth fund is effectively buying the company outright, with the private equity partners riding “on the coattails.”
The deal is also financially complex. Of the record-breaking $55 billion price tag to take the giant private, approximately $29 billion will be leveraged as debt. Despite reports that the PIF may currently be facing liquidity constraints, the acquisition is expected to proceed smoothly through regulatory approvals over the next year.
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However, the deal has not been without significant controversy. The acquisition has sparked protests from video game unions and human rights groups, citing Saudi Arabia’s human rights record. Critics point to the country’s strict laws regarding LGBTQI+ individuals—which include imprisonment and capital punishment—and the crackdown on female activists. The brutal murder of journalist Jamal Khashoggi, which US Intelligence accused the crown prince of ordering, remains a focal point of the opposition to the Kingdom’s “sportswashing” efforts to modernize its image through gaming investments.
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