Electronic Arts has officially concluded its $55 billion acquisition by a Saudi-led investment consortium, marking the gaming publisher’s transition from public to private ownership after 36 years of trading on the NASDAQ. The deal, completed on August 4, transfers control to Saudi Arabia’s Public Investment Fund and Affinity Partners, the latter headed by Jared Kushner. Shareholders, including numerous employees, will receive $210 per share as part of the transaction.
The acquisition carries substantial financial implications for EA, as the company assumes an $18 billion debt burden that will require approximately $1.8 billion annually in interest payments. Industry analysts have flagged concerns about the financing structure, noting that EA’s current annual earnings of roughly $1.5 billion—while theoretically sufficient to cover interest—leave limited room for operational flexibility. The company has informed debt investors of plans to slash $700 million in annual expenses, with $170 million attributed to “organizational efficiencies,” terminology that industry observers interpret as indicative of significant workforce reductions.
The transaction has prompted broader concerns within the gaming community regarding potential content changes and creative direction under new ownership. Some industry figures worry the buyout could prioritize established franchises over diverse game development, while others have raised human rights questions given Saudi Arabia’s restrictive laws regarding LGBTQ+ matters—a particular concern for titles like The Sims that feature inclusive relationship options. EA’s Chief Executive Andrew Wilson, who remains in his position, has pledged the company will continue creating “transformative experiences.”
Originally reported by Mashable →
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