EA Shareholders Greenlight $55 Billion Buyout, Leaving Company with $20 Billion Debt

EA’s shareholders have given the green light for a massive $55 billion buyout led by a group of investors that includes Saudi Arabia’s Public Investment Fund.

Earlier this year, it was announced that EA would transition to a private entity following this acquisition by a consortium featuring Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners, which was established by Jared Kushner, the son-in-law of the current U.S. President. The PIF is set to take a commanding 93.4% stake in the company, while Silver Lake and Affinity Partners will hold 5.5% and 1.1%, respectively. EA has indicated that it anticipates the deal to finalize in the first quarter of FY27, marking a significant milestone with this approval.

As noted by a source on BlueSky, “EA’s shareholders have officially approved EA’s $55 billion sale to a consortium led by Saudi Arabia’s Public Investment Fund.” This approval is just the initial step, as the deal now awaits scrutiny from government regulators. Given the recent Microsoft-Activision acquisition, it’s likely that regulatory bodies in the U.S., EU, and UK will closely examine this buyout.

However, the acquisition comes with a hefty price tag, as EA will take on $20 billion in debt, raising concerns among employees about the company’s future. One anonymous developer expressed apprehension, stating, “We know, when the deal closes, it’s going to get worse before it gets better, if better is even possible,” and added, “I’m nervous about what this means in terms of workforce once the deal is closed, as layoffs usually follow those types of acquisitions.”

With EA incurring $20 billion in debt as part of this buyout, fans of BioWare, who have been waiting eight long years for Mass Effect 5, are understandably anxious about potential cost-cutting measures that could impact the studio.