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Saudi Arabia and President Trump's son-in-law are attempting to purchase Electronic Arts for $55 billion

The purchase would take the publisher of Madden, Battlefield, and Mass Effect off the stock market and into the hands of private owners.

Liara In Mass Effect
Image credit: BioWare

Just because the video game industry is growing larger and more profitable doesn’t mean that it is all good news for major studios. Even massive companies like EA are subject to corporate purchases. Electronic Arts has been bought for an eyewatering $55 billion by a consortium of buyers that includes Silver Lake, Jared Kushner, and the Saudi Arabian royal family. However, there is a $20 billion catch here.

The deal, which still needs approval from various governing bodies to go ahead, would be the largest leveraged buyout in history. That means that the purchase is financed through about $20 billion in debt, which EA will need to pay back before it becomes profitable again. “The revenue generated by big games like EA Sports FC, Madden, and Battlefield 6 will need to be in service to this debt, which may impact EA’s ability to invest in new games,” gaming industry expert Christopher Dring said in a reaction to the purchase.

The purchase will also make Electronic Arts a privately owned company; the consortium that has offered to buy the company will purchase all shares in EA, meaning it will no longer be traded on the stock market after this. It gives them total control over the direction of the company going forward. It is far too early to tell how much influence the new owners of EA, who either develop or publish iconic games such as Madden, Battlefield, Mass Effect, and The Sims, will exert on future gaming content. 

Saudi Arabia is involved in the purchase through their Public Investment Fund, which also owns portions of Take Two Interactive and Nintendo, as well as Pokémon Go developer Niantic. Jared Kushner, President Trump’s son-in-law, is involved in the deal through his company Affinity Partners.  


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Trent Cannon

Trent Cannon: Trent is a freelance writer who has been covering anime, video games, and pop culture for a decade. (He/Him)

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