Saudi Fund to Own Almost All of Electronic Arts After Buyout
Filing suggests the country’s Public Investment Fund needs to stump up about $29 billion
By Ben Dummett and Eliot Brown
Dec. 2, 2025 12:49 pm ET
The Electronic Arts headquarters building on 250 Shoreline Drive, with a large concrete sign displaying the EA logo in the foreground. The deal for Electronic Arts, unveiled in September, is set to be the largest-ever leveraged buyout. David Paul Morris/Bloomberg News
Saudi Arabia’s government investment fund is poised to take almost full ownership of Electronic Arts EA 0.31%increase; green up pointing triangle, a filing shows, representing another big financial bet at a time when the Middle East country’s coffers are already strained.
The details
The Public Investment Fund has teamed up with Silver Lake, the technology-focused buyout firm, and Jared Kushner’s investment firm Affinity Partners to buy the videogame maker for $55 billion including debt. The deal, unveiled in September, is set to be the largest-ever leveraged buyout.
The consortium didn’t disclose the planned ownership breakdown. But a November filing with Brazil’s antitrust regulator shows PIF would own 93.4% of EA, while Silver Lake and Affinity would own 5.5% and 1.1% respectively. That puts the onus on PIF to fund almost all of the deal.
The consortium is funding the deal with $36.4 billion in equity, and borrowing $20 billion of debt. PIF is rolling over an existing holding in EA that is worth about $5.2 billion at the takeover price, implying it has to put up about $29 billion of new cash to reflect its final ownership stake.
PIF is also a significant investor in Silver Lake and Affinity funds, further adding to the financial risk it faces if the investment sours.
The context
The outsize stake is unusual for a buyout, where sovereign-wealth funds would typically ride on the coattails of traditional private-equity firms as minority investors. PE firms typically have more expertise in striking deals and running newly acquired businesses. Despite Saudi’s reputation for deep pockets, the $1 trillion PIF has become stretched by a multitude of commitments in the kingdom. These include pricey megaprojects, such as a new futuristic city called Neom, and a herd of new stadiums for the World Cup. In November, the fund said it shed holdings in more than four dozen U.S.-listed public companies, continuing a downward trend since 2021.
Meanwhile, the country’s finances are increasingly fragile. This year’s budget deficit is projected to more than double to 5.3% of gross domestic product, the highest level since 2020, when it surged during the pandemic. The kingdom still has hundreds of billions of dollars in foreign reserves, room for more borrowing and an economy that is expected to grow at a relatively brisk pace of 4%, according to the International Monetary Fund. But a subdued price for oil, its main revenue source, isn’t helping.
Write to Ben Dummett at
ben.dummett@wsj.com and Eliot Brown at
Eliot.Brown@wsj.com