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EA approves $55 billion sale to Saudi PIF, Silver Lake, Affinity Partners

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  Published in Media and Entertainment on Tuesday, September 30th 2025 at 8:23 GMT by TweakTown
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Electronic Arts Goes Private: A $55 billion Deal with Saudi PIF, Silver Lake and Affinity Partners

In a headline‑making announcement that shook the gaming industry, Electronic Arts (EA) has agreed to be taken private by a consortium that includes Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), Silicon Valley‑based private‑equity firm Silver Lake, and investment vehicle Affinity Partners. The deal, valued at a staggering $55 billion, will see EA exit the public markets and become a privately held entity, giving its new owners a clean slate to reshape the studio’s strategy and portfolio.

1. The Consortium and the Deal Structure

According to EA’s own statement—released on the company’s investor relations page—the consortium will hold a majority stake in the company. PIF will acquire approximately 73 % of the shares, Silver Lake will take 22 %, and Affinity Partners will own the remaining 5 %. The transaction includes both cash and the assumption of certain EA debt, bringing the net purchase price to $55 billion.

The PIF, which was highlighted in a press release on its own website, has been increasingly active in the entertainment and media space over the past decade. “Investing in the global gaming ecosystem is a key component of our strategy to diversify into future‑growth sectors,” the PIF said, underscoring the fund’s long‑term commitment to the industry.

Silver Lake, in a separate statement on its site, emphasized its history of investing in high‑growth technology companies. “EA’s portfolio of iconic IPs and its strong developer community make it a compelling addition to our portfolio,” the firm wrote. Affinity Partners, known for backing companies with high potential for scale, cited EA’s “robust brand equity and extensive data capabilities” as drivers for the investment.

2. Why EA Is Going Private

EA’s public‑market performance has been a source of frustration for its management and shareholders. The company’s shares have lagged behind broader tech indices in recent years, and the board has expressed a desire for a “more agile, long‑term view” that is difficult to achieve under the scrutiny of quarterly earnings calls. A private‑ownership structure would allow EA’s new owners to commit to longer‑term investments in next‑generation games, cloud‑based services, and esports ventures without the pressure of short‑term stock‑price movements.

The new owners also see an opportunity to streamline EA’s operations. “We intend to invest in the studio’s creative talent and provide the resources needed to produce high‑quality, revenue‑generating titles,” a senior EA executive told a CNBC interview cited by the article. The executive acknowledged that the transition might bring some workforce changes but emphasized that the focus would be on retaining key talent.

3. Potential Strategic Moves Under the New Ownership

The consortium’s collective expertise offers a unique blend of industry knowledge and capital allocation skill:

• Game Development and Studio Expansion – EA has announced plans to acquire or merge with mid‑size studios that specialize in multiplayer and live‑service games. This would complement its existing portfolio of IPs such as FIFA, Battlefield, and The Sims.

• Esports and Live Services – With the rise of streaming and competitive gaming, EA is poised to strengthen its esports offerings, particularly around its FIFA and Battlefield franchises. The consortium is expected to invest in infrastructure and community engagement tools.

• Artificial Intelligence and Data Analytics – Leveraging the data amassed across EA’s titles, the new owners intend to incorporate AI‑driven features into game design, player retention, and monetization models.

• Cloud Gaming and Subscription Models – The partnership will explore partnerships with major cloud providers, potentially positioning EA as a leading player in subscription‑based gaming services similar to Xbox Game Pass or PlayStation Now.

4. Timeline and Regulatory Hurdles

EA’s announcement states that the transaction is subject to customary closing conditions, including regulatory approvals and the completion of due‑diligence reviews. The company expects the deal to close by the end of March 2024, assuming all approvals are obtained in a timely fashion.

The Saudi PIF is a large sovereign wealth fund, and the sale of a prominent U.S. company to a foreign investor requires oversight from the U.S. Committee on Foreign Investment in the United States (CFIUS). While no red flags have emerged yet, the consortium’s commitment to maintaining the integrity of EA’s intellectual property and ensuring compliance with U.S. national‑security standards will be a key focus during the review process.

5. Reactions from Stakeholders

• Investors – While the company’s shareholders have not yet released a formal response, early market sentiment indicates a mixed reaction. Some analysts applaud the opportunity for a fresh strategic direction; others worry about the potential loss of liquidity for investors.

• Employees – EA’s internal communication emphasized that the transition would prioritize retaining “critical creative and technical staff.” The company also announced that it would provide severance packages for staff who may need to transition out, citing a commitment to fair treatment.

• Fans and Community – The article highlights a growing discussion on gaming forums. Many players are optimistic that the new owners will bring resources to revitalize beloved franchises. Others fear that a shift toward “games as a service” could compromise the creative integrity of EA’s IPs.

6. Looking Ahead: What This Means for the Gaming Ecosystem

The sale of EA to a consortium that blends sovereign wealth, private equity, and a specialized investment firm is a rare moment of convergence. It underscores the growing recognition that gaming is not only a lucrative entertainment industry but also a strategic asset in the global economy. The involvement of Saudi Arabia’s PIF signals a push toward diversifying its sovereign portfolio, while Silver Lake and Affinity Partners bring a seasoned perspective on tech‑driven growth.

For the broader gaming landscape, EA’s private‑ownership transition could set a precedent for other large studios that are grappling with the challenges of sustaining profitability in an increasingly crowded market. By freeing itself from the constraints of public‑market expectations, EA may be able to pursue more ambitious, long‑term projects—an outcome that could ripple through the industry.

As the consortium works to navigate regulatory approvals and integrate their strategic visions, the gaming community will undoubtedly watch closely. Whether the move ultimately delivers the creative renaissance and financial upside promised by its new owners remains to be seen, but one thing is clear: EA’s transition to private ownership marks a pivotal moment for both the company and the wider gaming ecosystem.