Electronic Arts Acquisition: EA Purchased by Saudi Arabia’s PIF, Silver Lake, and Affinity Partners in $55 Billion Deal

Electronic Arts (EA), one of the most influential game publishers in the world, has officially been acquired for USD $55 billion by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners.

This historic deal, confirmed through EA's investor relations site on June 2024, marks one of the largest acquisitions in video game industry history. Founded in 1982, Electronic Arts is renowned for blockbuster franchises such as The Sims, Battlefield, and the iconic EA Sports series including FIFA and Madden.

The company is also known as the publisher behind BioWare’s critically acclaimed Dragon Age and Mass Effect franchises, making EA a significant presence on platforms like the Nintendo Switch and in digital storefronts like the Nintendo eShop. The acquisition is structured as a $36 billion equity investment, complemented by a $20 billion debt attributed to EA, and is anticipated to conclude in the first quarter of fiscal year 2027.

Bloomberg's Jason Schreier first reported on the negotiation, noting the magnitude of the stake and the potential industry ramifications. Andrew Wilson, Chairman & CEO of Electronic Arts, responded to the acquisition with a forward-looking statement.

"Our creative and passionate teams at EA have consistently delivered groundbreaking work, entertainment, and value for millions of global fans," Wilson remarked, adding, "This pivotal deal underscores their achievements.

We are committed to advancing the frontiers of entertainment, sports, and technology, unlocking new possibilities.

Working alongside our new partners, we will deliver innovative experiences that inspire future generations.

I am more energized than ever for what lies ahead." Saudi Arabia’s PIF previously owned a 9.9% stake in EA, making it the third-largest institutional shareholder before this acquisition.

The PIF—also a prominent investor in gaming giants such as Nintendo, Capcom, Embracer Group, and Take-Two Interactive—has expanded its influence dramatically within the gaming sector.

Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF, emphasized the group's commitment to video games and esports: "PIF has continued to demonstrate a strong dedication to the global gaming and esports sectors.

This partnership is set to propel EA’s long-term expansion and drive further innovation across the industry." Silver Lake, another stakeholder in the deal, is well-known for its involvement with major tech and entertainment companies, including considerations around the US spin-off of TikTok.

Affinity Partners contributes a strategic investment approach, led by the current US President's son-in-law, Jared Kushner. EA's acquisition underscores the increasing convergence of technology, entertainment, and investment powerhouses, promising substantial implications for players on Nintendo Switch and beyond.

As the transaction progresses toward a projected close in fiscal year 2027, all eyes will be on EA’s evolution and its impact across platforms, including future innovations within the Nintendo eShop and the broader gaming landscape. Source: ir.ea.com

Electronic Arts EA Saudi Arabia Silver Public Investment Fund Silver Lake Affinity Partners PIF BioWare The Sims Battlefield Dragon Age Mass Effect Jason Schreier Nintendo Capcom Embracer Group Take-Two Interactive Turqi Alnowaiser