What to know about the Electronic Arts buy out and the role of Donald Trump’s son-in-law Jared Kushner

Video game maker Electronic Arts has agreed to be bought out for a record sum in a deal expected to win approval despite controversy.

Saudi Arabia’s Public Investment Fund (PIF), which has faced repeated accusations of sportswashing for its growing investments in sports, gaming and esports, already owns a 9.9% stake in EA. It is now on the verge of completing a $55 billion buyout alongside Lake Partners and Affinity Partners, the latter run by Donald Trump’s son-in-law Jared Kushner.

Largest private equity deal in gaming

If approved, the transaction would be the largest private equity acquisition ever in the video game industry. The buyout still requires shareholder and regulatory clearance, but analysts believe the political and financial clout of the Saudi fund and its U.S. partners makes rejection unlikely.

The PIF is viewed as getting favorable terms, with the global gaming market continuing to expand rapidly. EA, publisher of blockbuster franchises such as Madden NFL, EA Sports FC and The Sims, remains one of the industry’s biggest players.

PIF deal comes ahead of major release

Some analysts are puzzled by the timing of the agreement, which arrives just days before the launch of Battlefield 6 on Oct. 10. Early reviews of the game have been strong, raising the possibility of a share price boost once it hits the market.

How going private could reshape EA

For EA, becoming a private company could provide more freedom in how it develops and distributes games. In the best-case scenario, that flexibility could lead to more innovative releases, though history shows privately owned gaming companies do not always deliver on such promises.

“Gamers are generally not enthralled with corporate owners influencing how game makers make their games, to say the least,” said Ben Schneider, a professor of practice in the Interactive Media and Game Development program at Worcester Polytechnic Institute.

For some, though, a change to the current EA model would be welcome. Critics have accused EA of an overly aggressive push into online content and monetization in recent years, arguing the company prioritizes profits over player experience.

Debt raises concerns about more layoffs

One clear risk, Schneider noted, is the $20 billion in debt financing the deal. While EA has not announced cost-cutting plans, workforce reductions are common when a publicly traded company goes private.

EA already cut 5% of its workforce in 2024 and laid off several hundred employees in May. Investors and employees alike will be watching closely to see if more cuts follow if and when the deal closes.

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