Saudi Arabia, Private Equity, and Jared Kushner Take Ownership of Electronic Arts

Electronic Arts has officially been acquired for $55 billion, marking the second-largest transaction in gaming history as the company transitions to private ownership.

The acquisition involves a consortium that includes the Saudi Arabia Public Investment Fund (PIF), Silver Lake Partners, and Affinity Partners, a private equity firm led by Jared Kushner, son-in-law of former President Donald Trump.

In a press release, Kushner expressed enthusiasm about the acquisition, stating, “EA has created stories, characters, and communities that have become part of everyday life for hundreds of millions of people. We’re excited to support the company as it continues to reach new audiences, inspire the next generation of creators, and expand the ways people around the world connect through play.”

Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF, noted their long-standing investment in EA, saying, “Having been a minority investor in the company for more than five years, we have a deep understanding of EA’s unique platform, massive global sports and gaming franchises, and iconic IP. Entertainment and sports are key areas of strategic focus for PIF, and are among the fastest growing and evolving sectors around the world. Together, the Consortium is uniquely positioned to be a long-term partner to EA’s management team in driving sustained growth and innovation for EA and the industry.”

Egon Durban, CEO and Managing Partner of Silver Lake, highlighted the beloved nature of EA’s franchises, stating, “EA’s franchises are some of the most beloved in entertainment, combining exceptional creative talent with a relentless focus on players. As long-term investors in technology, we admire how EA’s innovation fuels imagination and human connection. We’re proud to join with PIF and Affinity Partners to invest heavily in EA’s growth, including what AI can do to enhance game development and player experience, and excited to partner with Andrew and the EA team as they raise the bar for fans everywhere.”

Despite the consortium’s formation, reports indicate that Saudi Arabia will hold a 93 percent stake in EA through the PIF upon completion of the acquisition. The PIF, managed by Crown Prince Mohammed bin Salman, boasts total assets estimated at $900 billion and aims to support initiatives that strengthen Saudi Arabia’s economy. The fund has previously invested in various gaming ventures, including acquisitions of Scopely, Niantic, SNK, and EVO, as well as stakes in companies like Nintendo and Take-Two Interactive.

The acquisition was initially announced last September and has received approval from both EA shareholders and relevant regulatory bodies. However, concerns have been raised regarding the implications of the deal. Reports have surfaced indicating that credit rating agencies plan to reassess EA’s credit rating unfavorably, and analysts worry this could lead to the closure of studios like BioWare. Additionally, the transition to private ownership will eliminate EA’s earnings calls, making it harder to access public information about the company’s operations.

Critics have also voiced their disapproval of the deal, citing Saudi Arabia’s troubling human rights record. Amnesty International has highlighted various violations, including a significant number of executions, torture of prisoners, restrictions on freedom of expression, and discrimination against women and LGBTQ+ individuals. Employees and players alike have expressed frustration, particularly given EA’s ownership of The Sims, a franchise known for its positive representation of diverse communities.

Affinity Partners, fully owned by Kushner, has received substantial funding from the PIF, which invested $2 billion shortly after Kushner’s departure from the White House. Kushner and Affinity Partners are currently under investigation by the House Judiciary Committee for potential conflicts of interest related to his actions during the Trump administration. He is also serving as a “Special Envoy for Peace” in the Middle East, facing accusations of misusing his diplomatic influence in connection with the significant capital raised from sovereign wealth funds, particularly from Saudi Arabia.