Electronic Arts has officially been sold for $55 billion, with the company going private in the second-largest deal in gaming history.
EA’s sale goes to a collective consisting of the Saudi Arabia Public Investment Fund (PIF), Silver Lake Partners, and Affinity Partners, a private equity firm owned by President Donald Trump’s son-in-law Jared Kushner.
The news was shared today in a press release that contained quotes from all three of the new owners, including Kushner himself:
“EA has created stories, characters, and communities that have become part of everyday life for hundreds of millions of people,” said Jared Kushner, Chief Executive Officer of Affinity Partners. “We’re excited to support the company as it continues to reach new audiences, inspire the next generation of creators, and expand the ways people around the world connect through play.”
“Having been a minority investor in the company for more than five years, we have a deep understanding of EA’s unique platform, massive global sports and gaming franchises, and iconic IP,” said Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF. “Entertainment and sports are key areas of strategic focus for PIF, and are among the fastest growing and evolving sectors around the world. Together, the Consortium is uniquely positioned to be a long-term partner to EA’s management team in driving sustained growth and innovation for EA and the industry.”
“EA’s franchises are some of the most beloved in entertainment, combining exceptional creative talent with a relentless focus on players,” said Egon Durban, CEO and Managing Partner of Silver Lake. “As long-term investors in technology, we admire how EA’s innovation fuels imagination and human connection. We’re proud to join with PIF and Affinity Partners to invest heavily in EA’s growth, including what AI can do to enhance game development and player experience, and excited to partner with Andrew and the EA team as they raise the bar for fans everywhere.”
Despite the “consortium” announced in this deal, a report late last year revealed that at the closing of this acquisition, Saudi Arabia will own 93-percent of EA through the PIF. The PIF. The PIF is the sovereign wealth fund of Saudi Arabia, run by Crown Prince Mohammed bin Salman and with current total estimated assets of $900 billion. The fund’s purpose is to support development that will bolster Saudi Arabia’s national economy, and has been used to fund similar video game-related endeavors such as the acquisitions of Scopely, Niantic, SNK, EVO, and investments in companies such as Nintendo, Take-Two Interactive, and more.
The acquisition was first announced last September, and has since been approved both by EA shareholders and by necessary regulators. However, many others have expressed concern over the consequences of the deal. Last year, Bloomberg reported that multiple credit rating agencies planned to reevaluate EA’s credit rating in the aftermath of the deal (and not in a good way), while other analysts have expressed concern this could mean the closure of studios such as BioWare. This will also mean the end of EA’s earnings calls, sending the company into a black box where public data on its activities will become far more difficult to obtain.
Additionally, many have criticized the deal in light of Saudi Arabia’s long record of human rights violations. Amnesty International has flagged that, among other things, Saudi Arabia recently executed the highest number of individuals on record in a given year, has a reported recent history of torturing prisoners, severely limits freedom of expression and association, discriminates against women in both law and practice, and criminalizes same-sex relations and other LGBTQ+ activities, among other violations. Employees speaking to press as well as players have expressed anger at this decision, particularly given the company’s ownership of The Sims, a series that has historically been at the forefront of positive representation of women and LGBTQ+ individuals.
