A November 2025 filing with Brazil’s antitrust regulator obtained by The Wall Street Journal reveals that Saudi Arabia’s Public Investment Fund will own 93.4 percent of Electronic Arts after the $55 billion leveraged buyout closes, making the kingdom the de facto owner of the FIFA, Madden NFL, Battlefield, and Sims publisher. Silver Lake Partners will own 5.5 percent, while Jared Kushner’s Affinity Partners – founded by Donald Trump’s son-in-law – will control just 1.1 percent. The consortium is financing the deal with $36.4 billion in equity and $20 billion in debt from JP Morgan. Removing PIF’s existing $5.2 billion stake (9.9% of EA rolled over into the new structure), Saudi Arabia is putting up approximately $29 billion in new capital for effective total control. Analysts warn the massive debt load will force EA to prioritize predictable revenue streams like annual sports games and live service titles over risky single-player projects, while BioWare developers have expressed concerns about the studio’s future under Saudi ownership. The deal requires shareholder and regulatory approval, with a shareholder vote scheduled for later in December 2025 and closing expected by Q1 FY 2027.
The Ownership Breakdown
When EA announced the buyout in October 2025, the company described it as a “consortium” of three investors without specifying ownership percentages. That ambiguity led to assumptions that Saudi Arabia, Silver Lake, and Affinity Partners would split control more evenly. The Brazil filing reveals the reality is far different – this is fundamentally a Saudi acquisition with two minority partners along for the ride.
Here’s how the $55 billion breaks down according to Wall Street Journal reporting:
– Total deal value: $55 billion
– Equity financing: $36.4 billion
– Debt financing: $20 billion (from JP Morgan)
– PIF existing stake rolled over: $5.2 billion (9.9% ownership)
– PIF new capital: approximately $29 billion
– Final ownership: PIF 93.4%, Silver Lake 5.5%, Affinity Partners 1.1%
The math reveals that after accounting for their existing stake and the debt, Saudi Arabia is paying roughly $29 billion for near-total control of one of gaming’s biggest publishers. Silver Lake and Affinity Partners are essentially minority investors with limited influence over EA’s strategic direction. At 93.4 percent ownership, PIF has absolute control over board appointments, executive compensation, strategic planning, and every major decision EA makes.
The Debt Problem
The $20 billion in debt financing makes this a classic leveraged buyout – the acquiring entity borrows money to purchase the target company, then uses the target company’s assets and cash flow to repay that debt. This structure shifts risk onto EA itself. Instead of PIF risking $55 billion of its own capital, it’s risking $36.4 billion while EA becomes responsible for servicing $20 billion in debt obligations.
Analysts across multiple firms have warned this debt load will fundamentally change how EA operates. Games Industry editor Christopher Dring told BBC Sport that while this is a “momentous” soft power victory for Saudi Arabia, “whether it’s good for everyone else is another matter.” The concern is that EA will need to generate consistent, predictable revenue to service the debt, which means doubling down on annual sports franchises (FIFA, Madden, NHL) and live service games (Apex Legends, Battlefield) while reducing investment in riskier single-player projects that take years to develop and might not find audiences.
This isn’t speculation – it’s the documented pattern of leveraged buyouts. When private equity firms use debt to acquire companies, those companies become financially constrained. Innovation gets sacrificed for proven revenue streams. Long-term thinking gives way to quarterly performance metrics. Creative risk-taking becomes unaffordable when you’re servicing billions in interest payments.
What This Means for Game Development
EA’s studios work on two types of projects: predictable annual releases (sports games, sequels to established franchises) and riskier original IP or single-player games. The debt structure incentivizes the former while discouraging the latter. BioWare’s Dragon Age and Mass Effect franchises, Respawn’s single-player Star Wars games, and any experimental projects become harder to justify when leadership needs guaranteed ROI to service debt obligations.
Gaming Bolt’s report noted that “concerns have started rising among some of the developers, including BioWare, who have started becoming unsure about the studio’s future after the deal for EA’s acquisition is finalised.” This anxiety is justified. BioWare just released Dragon Age: The Veilguard, which received mixed reception and unclear sales performance. If the game underperformed and the studio can’t guarantee its next project will be a massive hit, why would debt-laden EA keep funding it when those resources could go toward Madden 26 or FIFA Ultimate Team content that prints money?
Saudi Arabia’s Gaming Ambitions
This EA acquisition is Saudi Arabia’s largest gaming investment but far from its first. PIF has stakes in Nexon (9.26%), Capcom (5.01%), Nintendo (8.58%), Take-Two Interactive, and numerous other publishers. The kingdom is positioning itself as gaming’s most powerful external influence, with tentacles in every major Western publisher except Microsoft and Sony (who actively compete against Saudi interests in different ways).
The strategy is part of Saudi Arabia’s Vision 2030 initiative to diversify the economy away from oil dependence. Gaming represents entertainment soft power – shaping global culture through media products. By controlling EA, Saudi Arabia gains influence over FIFA (the world’s most popular sports game), Battlefield (a major military shooter), The Sims (a lifestyle simulation), and numerous other franchises reaching hundreds of millions globally.
Christopher Dring’s assessment that this gives Saudi Arabia potential influence over “not just game development but also in production of hardware like consoles and accessories” reflects long-term concerns. If PIF controls enough publishers, it could theoretically leverage that position to demand concessions from platform holders. Sony and Microsoft need EA’s games on PlayStation and Xbox. If Saudi Arabia wanted to push specific policies or extract favorable terms, that 93.4 percent ownership stake in EA becomes a negotiating cudgel.
The Geopolitical Dimension
Saudi Arabia’s human rights record, involvement in the Yemen conflict, assassination of journalist Jamal Khashoggi, and oppressive social policies create ethical complications for EA employees and players. When PIF bought Newcastle United and funded LIV Golf, those acquisitions faced massive criticism as “sportswashing” – using sports investments to rehabilitate the kingdom’s international reputation.
The EA acquisition is 11 times larger than Newcastle United’s purchase and dwarfs LIV Golf’s investment. This isn’t side hobby money – it’s Saudi Arabia buying near-total control of a company that employs thousands of Americans and Europeans, creates content consumed by hundreds of millions globally, and shapes gaming culture. The ethical questions scale proportionally with the investment size.
BBC Sport’s coverage emphasized this is “a remarkable triumph” for Saudi soft power, which is precisely what concerns critics. The more normalized Saudi ownership of Western entertainment companies becomes, the less Western audiences think about the kingdom’s human rights abuses. That’s the explicit goal of Vision 2030’s entertainment investments.
The Jared Kushner Connection
Affinity Partners’ 1.1 percent stake might seem insignificant, but the firm’s founder Jared Kushner – Donald Trump’s son-in-law and former senior White House advisor – raises additional red flags. Kushner founded Affinity Partners in 2021 after leaving the Trump administration, and PIF immediately became the firm’s largest investor with a reported $2 billion commitment despite Kushner having no private equity experience.
Kushner cultivated close relationships with Saudi leadership during the Trump administration, particularly Crown Prince Mohammed bin Salman. That relationship enabled deals like the Abraham Accords and softened US criticism of Saudi Arabia after Khashoggi’s murder. Now Kushner’s investment firm is partnering with PIF to buy EA, creating obvious conflicts of interest if Donald Trump’s family profits from deals involving a foreign government his father has political relationships with.
The 1.1 percent ownership stake in EA worth approximately $605 million represents a substantial payday for Affinity Partners with minimal capital commitment relative to PIF’s $29 billion. It’s effectively a finders fee or relationship premium – Kushner’s political connections and relationship with MBS grease the wheels for Saudi investments in American companies, and he gets rewarded with equity stakes.
Silver Lake’s Role
Silver Lake Partners is a legitimate Silicon Valley private equity firm with experience in technology investments. Their 5.5 percent stake ($3 billion+) positions them as the second-largest owner after PIF. Unlike Kushner’s firm, Silver Lake brings operational expertise and industry connections that could theoretically benefit EA’s management.
But 5.5 percent ownership means Silver Lake has essentially zero control. At board meetings, PIF’s 93.4 percent stake outvotes everyone combined by absurd margins. Silver Lake can offer advice and expertise, but if PIF wants something done and Silver Lake disagrees, PIF wins. The firm’s participation lends credibility to the deal – having a respected Western private equity firm involved makes the Saudi takeover seem less like a pure foreign acquisition – but functionally, Silver Lake is along for the ride.
The Shareholder Vote
The deal requires approval from EA shareholders, with a vote scheduled for later in December 2025. Shareholders are being offered $210 per share – a 25 percent premium over EA’s $168.32 share price when the deal was announced on September 25, 2025. That’s a substantial premium incentivizing shareholders to approve.
Historically, leveraged buyouts offering significant premiums rarely get voted down by shareholders. The immediate financial gain outweighs concerns about the company’s long-term direction under new ownership. Some institutional investors might vote no based on ethical concerns about Saudi Arabia, but the 25 percent premium makes approval highly likely.
Regulatory approval is less certain. The deal requires clearance from antitrust regulators in the US, EU, and other jurisdictions. While the acquisition doesn’t create traditional monopoly concerns (PIF isn’t buying multiple publishers to consolidate market share), there could be national security reviews given Saudi Arabia’s geopolitical position and EA’s status as a major American technology company. However, previous Saudi investments in gaming companies passed regulatory scrutiny without major issues, suggesting this will likely clear as well.
What EA’s CEO Says
EA CEO Andrew Wilson has maintained a relentlessly positive tone about the acquisition. His October statement emphasized: “Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work.”
Wilson insisted that EA’s “values and commitment to players and fans around the world remain unchanged.” PC Gamer’s Lincoln Carpenter noted this claim “seems increasingly unlikely” given PIF’s 93.4 percent ownership stake. When one entity controls that much of a company, values absolutely change to reflect that entity’s priorities. Saudi Arabia’s priorities include profit maximization, soft power enhancement, and advancing Vision 2030 objectives – not necessarily preserving EA’s corporate culture or commitment to diverse storytelling.
FAQs
How much of EA will Saudi Arabia own?
93.4 percent after the buyout closes, according to a November 2025 filing with Brazil’s antitrust regulator. This makes Saudi Arabia’s Public Investment Fund the de facto owner of Electronic Arts.
How much are Silver Lake and Affinity Partners getting?
Silver Lake Partners will own 5.5 percent, while Jared Kushner’s Affinity Partners will own 1.1 percent. Both are minority stakes with essentially no control over EA’s decisions.
How is the $55 billion being paid?
$36.4 billion in equity financing and $20 billion in debt from JP Morgan. PIF is rolling over its existing $5.2 billion EA stake and putting up approximately $29 billion in new capital.
What does the debt mean for EA?
EA will need to service $20 billion in debt obligations, forcing the company to prioritize predictable revenue streams like sports games and live service titles over riskier single-player projects.
When does the deal close?
Expected by Q1 FY 2027 (calendar Q2 2026) pending shareholder and regulatory approval. Shareholders vote in December 2025.
Why is BioWare concerned?
The debt-heavy structure makes risky projects like single-player RPGs harder to justify. If Dragon Age: The Veilguard underperformed, EA might shut down BioWare rather than fund another Mass Effect.
What’s Jared Kushner’s involvement?
His firm Affinity Partners owns 1.1 percent of EA post-buyout. Kushner founded the firm in 2021 with $2 billion from PIF after leaving the Trump administration, raising conflict-of-interest concerns.
Will this change EA’s games?
Likely yes. The debt pressure incentivizes annual sports releases and live service games over experimental single-player projects. Expect more FIFA Ultimate Team, less single-player innovation.
Can shareholders block the deal?
Theoretically yes, but the 25 percent premium ($210/share vs $168.32 pre-announcement) makes approval highly likely. Institutional investors rarely vote against substantial premiums.
Conclusion
The revelation that Saudi Arabia’s Public Investment Fund will control 93.4 percent of Electronic Arts transforms what was marketed as a consortium buyout into a straightforward Saudi acquisition with two minority Western partners providing political and operational cover. The $20 billion debt load EA will carry fundamentally changes the company’s financial calculus, forcing prioritization of proven revenue streams over creative risk-taking at exactly the moment when gaming audiences are fatigued by annual sports releases and live service grind. BioWare developers worried about studio closure under this structure have every reason for concern – a debt-laden EA controlled by foreign investors focused on Vision 2030 objectives has little patience for underperforming single-player RPG studios. Meanwhile, Jared Kushner’s Affinity Partners collecting 1.1 percent ownership worth $605 million creates obvious conflicts given his family’s political relationships and his firm’s $2 billion backing from the same Saudi fund buying EA. Whether this represents savvy diversification by a forward-thinking sovereign wealth fund or dangerous consolidation of gaming’s cultural influence in the hands of an authoritarian regime depends entirely on your perspective. Either way, FIFA, Battlefield, The Sims, and Mass Effect are about to become effectively Saudi-owned franchises, and the implications of that shift will unfold over the next decade as debt service demands collide with creative ambitions.