The acquisition of global video game development titan Electronic Arts (EA) has officially received the green light.
According to a document released by the European Commission in early August, as reported by financial media outlets, Saudi Arabia’s sovereign wealth fund—the Public Investment Fund (PIF)—along with an investor consortium, has secured EU approval under foreign subsidies regulations to acquire EA. The deal carries a hefty price tag of $55 billion, which translates to roughly 371.5 billion yuan.In an earlier regulatory filing, EA confirmed it had obtained all necessary approvals by July 30th and anticipated the transaction would be finalized by August 4th.
Back in September of last year, EA announced it had reached a definitive agreement for the consortium—comprising PIF, Silver Lake, and Affinity Partners—to acquire the company in an all-cash transaction, valuing EA at an enterprise value of approximately $55 billion. At the time, reports suggested this could go down as the largest acquisition ever funded by private equity.
Here’s how the financing breaks down: the three funds are kicking in $36 billion in cash, with the remaining roughly $20 billion coming from a loan arranged through JPMorgan Chase. Existing shareholders will receive $210 per share in cash, representing a 25% premium over the unaffected stock price.Upon closing, PIF will hold approximately 93.7% of shares, becoming the absolute controlling shareholder. Silver Lake will own about 5.5%, and Affinity Partners—founded by Trump’s son-in-law Jared Kushner—will hold roughly 1.1%. EA will delist from the Nasdaq and transition into a privately held company.
Analysts see this as the most significant move yet in Saudi Arabia’s “Vision 2030” strategy within the gaming sector. PIF began building its position in EA stock back in 2021, and with the establishment of Savvy Gaming Group to delve deeper into esports, the fund’s gaming ambitions have been quietly taking shape for years.This EA acquisition marks a pivotal step in PIF’s strategy and represents the latest advancement in Saudi Arabia’s blueprint to transform itself into a global hub for video games and sports.It’s also a way to tap into EA’s massive user base to help revive the kingdom’s domestic gaming industry, which has been in a prolonged slump. On a broader level, Saudi Arabia is looking to diversify its economy beyond oil by investing in infrastructure, tourism, sports, gaming, and other high-growth sectors.
Founded in 1982, EA is one of the largest independent video game companies in the United States. The company specializes in the development and publishing of interactive entertainment software, wielding significant influence across sports, racing, shooting, and role-playing genres.
Between 2001 and 2005, the company bolstered its sports game development capabilities by acquiring studios like NuFX. From 2006 to 2008, EA rolled out titles such as “Need for Speed: Carbon,” “Harry Potter and the Order of the Phoenix,” and “Spore.” More recently, between 2019 and 2020, the company launched “Need for Speed Heat,” “Rocket Arena,” and “EA Sports UFC 4.”
In recent years, EA has scaled back its game output, pivoting instead toward “games-as-a-service” models designed to generate recurring revenue. In 2024, the performance of EA’s flagship soccer title “EA Sports FC 25” and its major annual release “Dragon Age: The Veilguard” both fell short of expectations, putting meaningful financial strain on the company.
EA’s fiscal third-quarter report for 2026 (covering the period ending December 31, 2025) shows revenue of $1.901 billion, up 1% year-over-year. However, net profit took a sharp dive, plummeting 69.97% to just $88 million, largely due to fluctuations in in-game spending and franchise business volatility.
Given the mounting performance pressure, EA has announced layoffs on multiple occasions.In March 2023, EA announced plans to cut roughly 6% of its workforce and reduce office space, aiming to concentrate spending on the best growth opportunities in the gaming industry. At that time, the company became the first major game publisher to disclose large-scale layoffs.
Then in February 2024, EA said it would trim another 5% of its staff—around 670 employees—citing shifting customer demand and a realignment of company priorities. The company also said it was considering reducing its real estate footprint and adjusting its product portfolio, estimating related charges of approximately $125 million to $165 million.
From a stock market perspective, EA’s share price has performed reasonably well over the past two years. As of the July 31st close, the stock was trading at $209.86, giving the company a market capitalization of $52.965 billion—an increase of roughly 54% compared to its share price at the end of July 2023.
