Saudi Arabia is pushing its gaming ambitions to unprecedented heights with the $55 billion leveraged buyout of Electronic Arts (EA)—the publisher behind blockbuster franchises such as Madden NFL, Battlefield, The Sims, and EA Sports FC. The deal marks a historic milestone in the kingdom’s strategy to diversify its economy away from oil and position itself as a leader in the global gaming industry.

The Largest Leveraged Buyout in History

The transaction is backed by the kingdom’s Public Investment Fund (PIF) alongside Silver Lake Management and Jared Kushner’s Affinity Partners. The consortium agreed to pay $210 per share in cash, a 25% premium compared to EA’s stock price before reports of the negotiations surfaced.

The deal surpasses the previous record set in 2007 with the $48.4 billion buyout of TXU Corp. To finance the acquisition, JPMorgan Chase & Co. committed a staggering $20 billion in debt—the largest leveraged buyout financing ever. PIF is also rolling over its nearly 10% stake in EA, worth roughly $5 billion, and will contribute the majority of the $36 billion in equity financing.

EA’s CEO Andrew Wilson welcomed the decision, calling it “a strong recognition of the creativity of our teams and the iconic experiences they have built for millions of players around the world.”

Building a Gaming Empire

EA’s flagship franchises like Madden NFL and EA Sports FC consistently rank among the industry’s top sellers. The highly anticipated launch of Battlefield 6 on October 10 further strengthened the case for taking the company private.

This deal is just the latest in a series of massive Saudi investments in gaming. PIF has already poured $30 billion into the sector, acquiring stakes in Nintendo, Take-Two Interactive, and Nexon. Through Savvy Games Group, it bought mobile gaming giant Scopely for $4.9 billion in 2023 and invested $3.5 billion in Niantic, the maker of Pokémon Go.

Now, however, the kingdom is shifting from mobile dominance to securing a major foothold in the console and PC markets, which remain the backbone of the $178 billion global gaming industry.

The Crown Prince and Esports Ambitions

Crown Prince Mohammed bin Salman, himself an avid gamer, has been at the forefront of promoting gaming as part of Vision 2030. Earlier this year, he personally closed the Esports World Cup in Riyadh, awarding a record-breaking $70 million prize pool.

Analysts suggest that aligning EA’s sports portfolio with Saudi Arabia’s heavy investment in the Saudi Pro League could unlock new opportunities across gaming and sports broadcasting.

Two Sides Under Pressure

Both parties face financial challenges. EA has been grappling with layoffs, criticism over failed titles and acquisitions, and slowing sales in the post-pandemic market. On the other side, PIF is increasingly reliant on debt markets to fund its diversification efforts, as lower oil prices weigh on Saudi finances.

Nevertheless, this record-shattering acquisition underscores Saudi Arabia’s determination to spend big in its quest to become a global gaming powerhouse.

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