EA shareholders have agreed to a $55bn leveraged buyout from a group of companies made up of Saudi Arabia's Public Investment Fund (PIF), US private equity firm Silver Lake and US investment firm Affinity Partners. PIF has an existing stake in EA of 9.9%. This consortium is putting forward $36bn in a combination of their own cash and PIF's existing stake. The consortium is taking on a further $20bn in debt to make the acquisition. The acquisition is expected to close in the April-June quarter of 2026 and represents the largest take-private deal ever. 

What does this mean for EA?

Under these new private owners, EA’s growth potential is likely enhanced but to what extent depends on how integrated EA becomes with PIF’s existing games businesses and how much access the company has to Silver Lake’s other portfolio companies. Most of the synergies will be focused on EA's sports game business and how it more actively brings its IP to sports more generally. Access to a cross-section of sports franchises, esports businesses, mobile gaming expertise and entertainment businesses gives the owners a better armoury to build a long-term growth strategy for EA. Access to Scopely, which comes under PIF’s gaming division Savvy Games, would enhance EA’s potential in the mobile games market. EA’s mobile gaming revenue remains relatively underdeveloped compared to its console and PC gaming business. EA’s overall revenue growth in recent years has been benign, so the opportunity to drive growth and build out a long-term strategy by bringing together a cross-section of expertise is attractive to both parties. A more diversified strategy could offset some of the huge investments being made in AAA gaming and drive broader value from the same IP investments.

Beyond that, going private means less onus on EA delivering on quarterly targets to satisfy the public markets and potentially more focus on long-term strategies and investments. The chances of EA being acquired or merging with another major games company became less likely as conditions for this size of deal deteriorated over the last two years. The PIF is probably one of a handful of candidates that could effectively fund this deal and it helped that it already had a 10% stake in the company. For EA shareholders this represents a very good deal considering the industry backdrop.

Aside from these synergies, EA is likely to face some more negative commercial ramifications as a result of this deal. First, with an additional $20bn in debt to service, the new owners will be looking to increase margin, cut excess spending and rationalise the company's workforce to deliver more free cash flow. According to an FT article on the deal, the consortium hopes that the introduction of AI tools and technologies will help cut the cost of development and drive up profitability and in turn the value of the company. Ampere believes AI's impact on game development is set to escalate, but how this impacts staffing and time to market for AAA games remains to be seen. It is likely there will need to be a reduction of costs through other means as well over the next 2-3 years. Ampere also expects there to be some immediate talent migration as a result of cultural differences between Western staff and Saudi ownership. However, Ampere does not expect the ownership to majorly impact consumer adoption of EA's new releases. 

What does this mean for Saudi Arabia's Public Investment Fund?

For the PIF, aside from continuing on with its general strategy to diversify away from its fossil fuel economy, acquiring EA represents a watershed moment for its sports, games, and esports portfolio. The PIF and its gaming business, Savvy Games, have been active in acquiring shares in major games companies over the last four years including the $4.9bn acquisition of US mobile game company Scopely, but this investment represents a step change in commitment. The acquisition adds a top 10 games publisher to the portfolio and a large collection of brands and franchises. 

EA also fits into the PIF's strategy of accumulating soft power through gaming, entertainment and sports, and, because of this, the value EA offers Saudi Arabia cannot simply be measured by the company's financial performance. EA's sports games business and its sponsorship of multiple football/soccer leagues globally, means it is a perfect vehicle for raising the profile of the country across the areas of sports, games and esports. This also accelerates PIF's target to build a domestic games industry, with Ampere expecting EA to establish a studio within Saudi Arabia as a result of this deal. The deal has yet to close and will be scrutinised by the Committee on Foreign Investment in the United States. With the deal making of Jared Kushner's Affinity Partners involved, Ampere expects the deal to go ahead without any major conditions being applied.    

What does this mean for the wider industry?

There are a few things to note. First, this deal underlines the key role that Saudi Arabia's PIF now plays in the global games industry. It is likely that there will be more acquisitions to come as it continues its industry diversification. While Asian publishers, and in particular Tencent, NetEase and Krafton, have had free run in recent times to acquire a large number of games companies, Saudi Arabia's commitment shifts the dynamic of the global order of the industry. Second, amid a slow growth market environment and increasing content costs, consolidation is still active as games companies look for ways to build market share, drive growth and gain more value from content investments. Generally, these deals are at a much lower value compared to this huge buyout: Ampere does not expect this deal to create a domino effect across other major games publishers. Lastly, as EA becomes private in 2026, there is a knock-on impact on performance transparency for one of the biggest games publishers globally. Third-party estimates of company performance will become increasingly important for competitors moving forward.