Why Saudi takeover spells disaster for EA FC fans

News

FT Desk

A US-Saudi consortium has completed the purchase of video game developer Electronic Arts for $55 billion.

The video games giant, which publishes successful franchises such as EA FC (formerly known as FIFA), Battlefield, Madden NFL, and The Sims, has been taken over by a consortium led by Jared Kushner, the son-in-law of United States president Donald Trump.

Kushner, through his investment company Affinity Partners, private equity firm Silver Lake and the Saudi Public Investment Fund (PIF) have acquired 100 per cent of EA in an unprecedented deal.

The consortium has paid $55 billion to acquire the entertainment company, representing "the largest "all-cash sponsor take-private investment in history," EA has announced. The entertainment heavyweight had been a publicly traded company for 36 years.

The deal was first agreed in September of 2025 and has now been finalised.

EA says that the takeover will allow it "to accelerate innovation and growth to build the future of entertainment" and enables "the Company to move faster and unlock new opportunities on a global stage."

According to the BBC, the deal is widely expected to be the largest leveraged buyout ever completed, with a substantial portion of the purchase being financed through debt rather than cash.

Alongside the $36 billion already committed, the PIF is set to borrow a further $20 billion from investment banking giant JPMorgan to finalise the acquisition. That borrowing will ultimately sit on the company's balance sheet, meaning the business itself will be responsible for repaying the debt.

There are fears that games will be further monetised with in-game purchases in order to alleviate some of that debt.

Jason Schreier of Bloomberg wrote on X:

"It’s official: EA is going private.

"The leveraged buyout will be financed by a staggering $20 billion of debt, which likely means some *aggressive* cost-cutting is ahead for EA in the coming months and years.

"A lot of people are (understandably) focused on the Saudi Arabia and Kushner part of this, but the far bigger immediate impact will come from the new private EA being on the hook for $20 billion in debt. That could mean mass layoffs, more aggressive monetisation, and other big cost-cutting measures."

The takeover has prompted unease among some EA fans, particularly because several of the publisher's best-known franchises, including The Sims, are recognised for their inclusive approach to gender, sexuality and LGBTQ+ representation.

Saudi Arabia's legal system, which is based on interpretations of Sharia law, allows severe penalties for consensual same-sex sexual activity.

In response to the proposed sale to the Public Investment Fund (PIF), campaign group Players Alliance HQ has urged gamers to oppose the deal by contacting elected representatives, raising awareness and voicing their concerns publicly.

The group's website states: "Video games are a reflection of culture and people through their storylines, characters and representation.

"With the PIF being the majority owner in the potential buyout, there is a large concern that creative decisions could be influenced by these outside factors, leading to themes such as free speech, gender, LGBTQI+ and other aspects of Western politics being reduced or fully censored across major franchises."

Over the last decade, Saudi Arabia has branched out into heavy investment in sports and entertainment.

The PIF fund currently owns Newcastle United and previously launched LIV Golf, while they are set to host WWE WrestleMania in 2027, having previously held a number of events in Riyadh and Jeddah.

There have been, of course, dozens of high-profile boxing fights held in Saudi Arabia.

They've been accused of sportswashing - effectively using sports and entertainment as a shield from criticism over human rights issues.

"If the PIF's football strategy limited them to ownership of Newcastle United and some Saudi Pro League teams,

owning EA hands them a relationship with the 20,000 players, 750 clubs and 35 leagues at the top of the professional game," George Osborn, journalist and author of Power Play: Video Games, Politics and the Battle for Global Influence, said.

"What is clear is that a state seeking to shape perceptions now owns an asset with proven reach to billions of people.

"How it uses it in the years to come is something we should watch closely."

The takeover is the second-largest deal ever completed in the video game industry, surpassed only by Microsoft's $69 billion acquisition of Activision Blizzard, the publisher behind the hugely successful Call of Duty franchise.