Saudi Arabia’s PIF to lead $55 billion acquisition of Electronic Arts (EA) gaming company

 

Electronic Arts to go private in $55b deal led by Saudi Public Investment Fund (PIF)

In one of the largest deals in gaming history, Electronic Arts (EA) is set to be taken private in a $55 billion acquisition led by Saudi Arabia’s Public Investment Fund (PIF), alongside Silver Lake and Affinity Partners. The all-cash buyout, which includes around $20 billion in debt, marks the largest privatization investment of its kind and is expected to close in Q1 FY27.

The deal underscores PIF’s expanding influence in the global games industry. The sovereign wealth fund already holds a 10% stake in EA and has been steadily building its gaming portfolio since 2021, with investments in Take-Two Interactive, Activision Blizzard, Nintendo, and Nexon. The move aligns directly with Vision 2030 and Saudi Arabia’s National Gaming & Esports Strategy, which aims to transform the Kingdom into a global hub for gaming and esports.

 

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EA’s strategic value

Despite broader industry challenges, EA has remained one of the most stable publishers, driven by its powerhouse sports franchises. According to Niko Partners, sports titles are the most popular genre in MENA: 33% of PC gamers and 44% of console gamers list them as their top choice, with football titles representing 70–80% of engagement. This positions EA as a natural fit for the Kingdom’s ambitions to integrate gaming, esports, and real-world sports.

Beyond gaming: A diversification play

While Saudi Arabia’s domestic gaming revenue still represents only about 1% of the global market, the acquisition is more about global strategic positioning. The deal could accelerate synergies between EA and other PIF-backed entities, particularly Savvy Games Group, which owns Scopely and has stakes in studios like Niantic.

 

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Analysts suggest the acquisition is not just about gaming, but about placing sports, esports, and entertainment at the core of Saudi Arabia’s diversification strategy. Similar investments have already reshaped global sports and entertainment landscapes, from LIV Golf and the Saudi Pro League to the ESL/FACEIT Group, the Esports World Cup, and the newly announced Esports Nations Cup.

Industry implications

The transaction also raises questions about the future of global gaming M&A. With mega-deals consolidating the industry, smaller publishers may face increasing challenges competing against entities backed by sovereign wealth funds and private equity giants.

For now, the EA buyout cements Saudi Arabia’s role as a major player in the future of global gaming—bridging esports, real-world sports, and digital entertainment under its Vision 2030 agenda.

Source: https://nikopartners.com/