Saudi Arabia’s Crown Prince Mohammed bin Salman Buys EA For $55 Billion – EA Staff Worried About Layoffs – Deal Likely To Conclude In First Half Of 2027
- Saudi Arabia’s Crown Prince Mohammed bin Salman, via PIF, is leading a $55 billion acquisition of EA, set to close in early 2027.
- EA stockholders will receive $210 per share in cash, a 25% premium, while Andrew Wilson remains CEO.
- Investors Silver Lake and Affinity Partners are involved, but PIF is the dominant force shaping the deal and EA’s future.
- We spoke with an EA staff member who expressed cautious optimism, though concerns about potential layoffs post-merger persist amid the industry’s broader employment cuts.
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Deal Officially Announced On Sept. 29, 2025
On the surface it would appear that EA has agreed to enter a deal with three different investors: Public Investment Fund (PIF), Silver Lake, and Affinity Partners, but in reality this deal is all about Saudi Arabia’s Crown Prince Mohammed bin Salman and PIF, which he chairs.
It is no secret that the Crown Prince has been working for years to position Saudi Arabia as a global Mecca for esports and gaming. EA is just the latest of many investments made by PIF over the years through its subsidiary Savvy Games Group.
“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work,” said Andrew Wilson, Chairman and CEO of Electronic Arts.
Deputy Governor and Head of International Investments at PIF, Turqi Alnowaiser, followed up by saying that PIF is in a unique position in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators.
“PIF has demonstrated a strong commitment to these sectors, and this partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale,” he said.
Cash Payment And Share Bailout For EA Stockholders
According to all parties involved, the transfer of ownership will be paid in cash as well as a roll-over of PIF’s already existing 9.9% stake in EA, worth about $36 billion, with JPMorgan Chase Bank covering $20 billion of debt financing of which $18 billion is expected at closing.
EA will continue to operate its headquarters in Redwood City, California, with Andrew Wilson remaining at the helm as CEO.
The new ownership consortium will acquire 100% of EA and current stockholders will be bought out at $210 per share in cash, which is a premium of 25% from EA’s unaffected share price of $168.32 when the market closed on Sept. 25, 2025.
All Roads Lead To The Crown Prince
Affinity Partners is an investment firm founded in 2021 by its CEO Jared Kushner, the former White House senior advisor and son-in-law of President Donald Trump. The firm was made possible through a $2 billion anchor investment by PIF, linking it directly to the same ecosystem funding Savvy Games Group’s acquisitions and stakes in global publishers.
“Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future. I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games - and now enjoys them with his kids – I couldn’t be more excited about what’s ahead,” said Kushner.
There are also ties between PIF and Silver Lake, a U.S.-based global equity firm specializing in technology investments. The firm is a longtime investor in Endeavor Group Holdings, parent company of IMG, and was a majority owner of ESL before PIF bought it, all of which are heavily involved in the esports industry.
“This investment embodies Silver Lake’s mission to partner with exceptional management teams at the highest quality companies. EA is a special company: a global leader in interactive entertainment, anchored by its premier sports franchise, with accelerating revenue growth and strong and scaling free cash flow. We are honored to invest and partner with Andrew – an extraordinary CEO who has doubled revenue, nearly tripled EBITDA, and driven a fivefold increase in market cap during his tenure,” said Egon Durban, Co-CEO and Managing Partner of Silver Lake.
Concerns Within EA
A programmer working for EA agreed to speak with Eneba anonymously about initial concerns discussed among the staff with the mood in the office described as “a bit more relaxed” the day after the deal was announced.
“While EA is depicted as a great, evil company externally, they actually treat their employees relatively well with pretty good compensation. More than the acquisition, it’s the identity of the people behind it that raised questions,” the programmer said.
The programmer noted that for now, salaries and bonuses will remain unchanged and confirmed the $210 per share buyout.
“That’s really the only thing to be somewhat happy about, everything else is at the best really worrying. I can see layoffs happening a year or so after the merger.”
The gaming industry has been plagued with layoffs over the last few years with reported figures of up to 40,000 with almost half getting the axe in 2024 according to Statista. It is not unusual to see layoffs when a new management takes over.
When Microsoft took over Activision Blizzard in January 2024, about 1,900 employees were laid off across all gaming operations which then included Activision Blizzard, Blizzard, King, Xbox, and ZeniMax/Bethesda. This was close to 10% of Microsoft Gaming’s entire workforce.
Issues With The Engines
Silver Lake is a major backer of game engine giant Unity Technologies, with billions invested across multiple rounds. Unity is licensed to thousands of developers making the full list of games powered by it huge.
Among the most well-known AAA-titles are Hearthstone, Genshin Impact, and Escape from Tarkov, and on mobile there is Pokémon Go, Angry Birds 2, and Call of Duty. The smash hit indie titles by Team Cherry, Hollow Knight and Hollow Knight: Silksong also run on Unity.
Unity’s key strength is that it is modular and uses a component-based system which allows game developers to mix and match behaviours, making it easier to build complex systems without hardcoding everything.
This is very much different from the in-house developed engine currently used by EA, Frostbite. Virtually all EA flagship IP titles like FC 26 and Battlefield 6 run on the company’s proprietary engine.
“Silver Lake is a majority stakeholder of Unity. So what does that mean long term for Frostbite? Frostbite is absolutely not modular, it’s a very monolithic blob of code,” the EA programmer said.
EA Takeover – It’s In The Future
EA’s Board of Directors has fully approved the takeover and expects the deal to close in the first quarter of fiscal year 2027 once all regulatory approvals have been made. The gaming giant is spread across North America, Europe, and Asia with major regional hubs outside of the U.S. in Canada, UK, Sweden, Ireland, and Romania.
“The future for EA is bright, we are going to invest heavily to grow the business and we are excited to support Andrew and the EA team as the company accelerates innovation, expands its reach worldwide, and continues to deliver incredible experiences to players and fans across generations,” said Durban.
The acquisition of EA for $55 billion could become the second largest in the gaming industry, only surpassed by Microsoft’s cash purchase of Activision Blizzard for $68.7 billion. It was announced on Jan. 18, 2022 and became the single largest gaming acquisition ever, reshaping competition and triggering major regulatory battles worldwide. The deal closed on Oct. 13, 2023.
“Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building,” said Wilson.
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