Who Owns EA? The Surprising Answer

A major shift is underway in the gaming industry as Electronic Arts (EA) has agreed to a monumental $55 billion acquisition by a powerful consortium of investors. This group includes Saudi Arabia’s Public Investment Fund (PIF), the U.S.-based private equity firm Silver Lake, and the investment firm Affinity Partners. The deal, while approved by EA’s board, still awaits final approval from stockholders and regulators, with an anticipated closing in the first quarter of the 2027 fiscal year.

The involvement of the Saudi Public Investment Fund (PIF) has generated significant controversy. As one of the world’s largest sovereign wealth funds, controlled by Crown Prince Mohammed bin Salman, PIF’s expanding footprint in video games through its Savvy Games Group division has drawn scrutiny. This is largely due to Saudi Arabia’s human rights record, where discrimination against women is systemic and homosexuality is illegal. Furthermore, a U.S. intelligence report concluded that the Crown Prince directly approved the 2018 killing of journalist Jamal Khashoggi. PIF’s existing game investments are substantial; it holds major stakes in companies like Nintendo, Capcom, Nexon, and Take-Two Interactive. It also fully owns Scopely, which in turn acquired Pokémon Go creator Niantic, and holds a significant share in the Embracer Group. Prior to this full acquisition bid, PIF already owned a sizable portion of EA’s stock, which it will now roll over into the new ownership structure.

The second key player, Silver Lake, brings deep expertise in technology investments. This American private equity firm, led by Egon Durban and Greg Mondre, boasts an impressive portfolio that includes companies like Dell, Stripe, and Unity Technologies. Its existing ties to the sports world are particularly relevant. Silver Lake is the majority shareholder of City Football Group, the parent company of Manchester City, and holds stakes in numerous other football clubs globally. This strategic alignment with EA’s core business, especially its massively popular EA Sports FC franchise (formerly FIFA), makes the investment a logical fit. In the acquisition announcement, Durban highlighted EA as a “global leader in interactive entertainment” with strong financial performance.

Completing the trio is Affinity Partners, an investment firm headed by Jared Kushner, the son-in-law of former U.S. President Donald Trump. Kushner’s relationship with Crown Prince bin Salman has been a subject of international attention. Reports indicate they maintained close contact even after the Khashoggi assassination, which Kushner reportedly later described as a “misstep” by the prince. After leaving the White House, Kushner secured a $2 billion investment for his new firm from the Saudi fund. This relationship has attracted political scrutiny in the United States. A U.S. Senate Finance Committee letter expressed serious concerns that investments in Affinity might not be driven by commercial motives but could represent an avenue to funnel foreign government money to Kushner and his family. The letter noted that Affinity had received $157 million in fees from foreign clients, with $87 million originating from the Saudi government. Affinity’s chief legal officer has publicly stated the firm has always acted appropriately and operates as a registered investment adviser.

While the business rationale for the consortium is clear, the deal’s finalization hinges on overcoming regulatory hurdles and securing stockholder consent. The profound implications of placing a Western entertainment giant like EA under this specific ownership structure will undoubtedly continue to be debated intensely in the months leading up to the anticipated close.

(Source: Games Industry)