From Traditional Sports to eSports. Why Did Saudi Arabia Spend 55Bn$ on EA?

Electronic Arts (EA), one of the biggest names in gaming, has agreed to a $55bn buyout, led by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Jared Kushner’s Affinity Partners. Known for iconic franchises like EA FC (formerly FIFA), The Sims, and Mass Effect, the deal will take EA private, with shares bought at a 25% premium ($210 per share). This marks the second-largest gaming acquisition after Microsoft‘s $69bn purchase of Activision Blizzard.

Jude Bellingham and Jamal Musiala are the cover stars of EA Sports’ latest football game, EA FC 26, which was released in September.

While EA’s CEO Andrew Wilson calls the deal a “powerful recognition” of the company’s work, concerns are rising about the $20bn debt taken on to finance the deal. Experts worry that servicing this debt could limit EA‘s ability to invest in new games or even lead to cuts within the company.

This acquisition significantly boosts Saudi Arabia’s gaming presence, following its recent investments in Niantic (Pokémon Go) and Scopely, as well as major esports events. The PIF, with its massive wealth, continues expanding its global gaming portfolio. However, the purchase raises ethical concerns, given Saudi Arabia‘s controversial human rights record.