A consortium led by Saudi Arabia’s Public Investment Fund, alongside private equity firm Silver Lake and Jared Kushner’s Affinity Partners, has completed the buyout of video game giant Electronic Arts for 55 billion dollar, equivalent to roughly 521 billion Swedish kronor, according to reporting by multiple outlets. The transaction marks the largest leveraged buyout of a US publicly traded company in history, removing EA from the Nasdaq exchange to operate as a privately held entity where the Public Investment Fund holds a 93 percent stake.
Private Equity Debt and Potential Layoffs
According to sources cited by The Financial Times, the buyout saddles EA with a debt burden of 189.6 billion kronor, resulting in approximately 19 billion kronor in annual interest payments. Bloomberg gaming journalist Jason Schreier reported on Bluesky that the newly private company faces immense pressure to service this debt load, which could trigger mass layoffs, aggressive monetization, and other severe cost-cutting measures. Schreier noted that EA has informed investors of plans to slash annual costs by 700 million dollar, including 170 million dollar dedicated to organizational efficiency.
Artificial Intelligence and Operating Costs
Financial backers are banking on artificial intelligence to offset operational expenses. Sources cited by The Financial Times indicate the acquisition strategy relies heavily on the hope that AI will significantly reduce EA’s operating overhead while simultaneously driving up profit margins. Silver Lake CEO Egon Durban stated that AI investments are coming to enhance game development and user experiences, while EA CEO Andrew Wilson expressed optimism about the company’s next chapter in a press release titled “Vårt nästa kapitel,” pledging bold investments and accelerated innovation.
Studio Restructuring and Recent Financial Performance
EA’s massive catalog generated strong revenues during the previous fiscal year, fueled heavily by the performance of Battlefield 6. Developed in part by the Swedish studio DICE, the title broke franchise records by selling over 7 million copies in its first three days on the market. Despite these commercial successes, studios under the EA umbrella—including Respawn, Criterion, and DICE—have absorbed hundreds of staff cuts over recent years as part of ongoing industry-wide contractions.
Saudi Arabia’s Vision 2030 and Gaming Investments
The acquisition aligns directly with Saudi Arabia’s Vision 2030, a state initiative designed to reduce the kingdom’s economic dependence on oil by targeting strategic sectors like gaming and e-sports. Public Investment Fund governor Yasir Al-Rumayyan emphasized that the sovereign wealth fund will continue supporting domestic ecosystems and building global economic partnerships. In early 2022, the Public Investment Fund launched the Savvy Gaming Group under Crown Prince Mohammed bin Salman to establish a dominant national and international footprint in the gaming sector.
Frequently Asked Questions
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How much did the Electronic Arts buyout cost?
According to verified reports, the acquisition price reached 55 billion dollar, or approximately 521 billion kronor, making it the largest leveraged buyout of a US-listed company on record. -
Who now owns Electronic Arts?
EA is now a privately held company. A consortium led by Saudi Arabia’s Public Investment Fund holds a 93 percent stake, alongside Silver Lake and Jared Kushner’s Affinity Partners. -
Why are analysts predicting layoffs at EA?
According to reporting by Bloomberg’s Jason Schreier and The Financial Times, the buyout introduces a massive debt burden requiring billions in annual interest, prompting plans for 700 million dollar in cost reductions.
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