Source:people.com
The gaming industry is no stranger to sudden big news and market shakeups, but what transpired a few weeks ago shook the entire fandom. From players and execs to experts and content creators, the news of EA Games being sold was definitely a surprise. On September 29, one of the biggest game developers and publishers ever, Electronic Arts (EA), announced it would be taken private in a landmark $55 billion leveraged buyout.
And who are the new buyers and investors? A consortium including Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Affinity Partners, the firm founded by Jared Kushner. So what does this mean for the future of the iconic gaming company for the fans, the gamers who practically made it so big? More specifically, how will its golden goose, the EA Sports branch, be affected?
An Unprecedented Acquisition in Gaming
Under the terms of the deal, EA shareholders are to receive $210 per share in cash, a roughly 25% premium over the pre announcement price. The acquisition consists of about $36 billion in equity and $20 billion in debt financing (with $18 billion expected at closing) via JPMorgan. EA’s headquarters are to remain in Redwood City, and CEO Andrew Wilson is expected to stay at the helm after the transition. The deal is projected to close in EA’s first fiscal quarter of 2027, contingent on regulatory and shareholder approval.
This acquisition is historic as it will be the largest leveraged buyout ever in the gaming sector, eclipsing prior deals in both scale and narrative. For Kushner, the deal is a continuation of his post-politics strategy. Affinity Partners has already secured billions in backing from the Saudi sovereign fund, and the firm has become more active in high-profile tech and media deals as of late, just like the Saudi government. The Saudi PIF, meanwhile, already held 9.9% in EA before the deal, and that portion will roll over into the new ownership structure.
Saudi Arabia’s interest in EA fits with its broader strategy under Vision 2030 to diversify its economy away from its near sole reliance on oil. They are now leveraging popular tech, gaming, sports, esports, and entertainment to build new revenue streams and soft power influence that would take their country where none have been before. The kingdom has already invested heavily in related assets, such as ESL, FACEIT, and the Savvy Games Group. This is only a step further into their future in many areas of pop culture.
What It Means for EA Sports
For many players, EA’s sports franchises are quite familiar. Sometimes comforting, sometimes controversial, they have had their hits and misses. With new ownership, fans will be watching closely for changes in philosophy, monetization, and development priorities. One likely shift is a reduced pressure on quarterly earnings reports. As a private company, EA could take bolder long term bets, invest in deeper technologies like AI, cloud, and cross platform ecosystems, or reconfigure its game structure without worrying about immediate shareholder backlash.
Several analysts have noted that EA’s live service games and recurring revenue streams are an attractive base for a debt financed buyout, because they offer predictable cash flows. However, the increased debt burden is a real risk. With $20 billion of leverage baked into the acquisition, EA will need to ensure strong margins and steady growth to service that debt. Cost pressures could lead to studio consolidations, layoffs, or tighter oversight of IPs that do not deliver strong returns. Former insiders and critics have speculated that under this new regime, EA might cut or spin off less profitable studios or franchises.
Politically, the presence of the Saudis and Kushner’s involvement raises ethical and reputational questions. Some fans may worry about “sportswashing” or ideological influence over content decisions, particularly in modes that touch on social issues, representation, or cultural sensitivity. Studios like BioWare have, in the past, pushed forward socially progressive narratives. Whether new owners push content toward less controversial territory is an open question.
At the same time, the consortium may push EA to expand into adjacent entertainment realms like film, television, live sports partnerships, urban experiences, and more. It could become more in line with what the new board is focused on, which is sports, esports, and new types of entertainment. EA’s franchises are brand assets that could be reimagined beyond the screen. The new owners may seek to exploit synergies across media and global markets to capitalize on their new investment portfolio.
Flagship EA Titles and Industry Influence
EA boasts several high profile franchises, including The Sims, Madden NFL, Apex Legends, Battlefield, Mass Effect, and, of course, the EA Sports line of titles. Those sports titles have historically functioned as moneymakers, often under the “live service + microtransaction” model. Among them, EA Sports’ crown jewel is currently EA Sports FC 26. FC 26 features updates to career mode with a “Deep Simulation” mode akin to what one sees in franchise soccer management titles, new tournaments within Ultimate Team, and a “Coach Live” mode offering dynamic objectives. The franchise remains the engine of EA’s sports business as it is driving massive engagement and recurring revenue through in game purchases, player pack systems, and online modes.
The success of EA’s sports games over time has had ripple effects across the industry, particularly in popularizing the “pack opening” simulation model. In games like FIFA/FC, users purchase virtual packs containing randomly assigned items like players, cards, or consumables. The psychological draw of opening rare items, combined with the social sharing of “pack pull” moments, has become an entire genre unto itself. This model has influenced many spin offs or clones in the mobile and blockchain space, and even third party developers. One such example is the Stake Packs game developed by Stake Originals, a game that centers entirely around pack opening mechanics. It turns the randomized loot box concept into a standalone experience.
What Do The New Owners Bring to the Table?
Affinity Partners, Jared Kushner’s investment vehicle, was launched after his government service. It has gradually secured capital ever since, some of it from ultrahigh net worth and sovereign sources like the Saudi PIF. Kushner’s involvement adds a political dimension to the deal, given his ties to the Trump family, longstanding connections to Saudi leadership, and his involvement with Israel and the entire Middle East. Through this deal, Kushner positions himself as a significant player in entertainment and gaming, not just finance or real estate, where he is already one of the biggest players in the world.
The Public Investment Fund is the sovereign wealth fund of the Saudi Arabian government. It has aggressively expanded into the gaming and media sectors in recent years and made partnerships with some of the biggest celebrities, athletes, sports leagues, and companies. Its Savvy Games Group arm has invested in multiple game studios and esports infrastructure, positioning it as a central force in the global gaming ecosystem. By rolling over its stake in EA and becoming a major equity backer, PIF further solidifies its grip on influential gaming IPs that could shape the industry for decades to come.
Silver Lake is a major private equity firm with a track record in tech, media, and entertainment. It brings deep experience in leveraging intellectual property, commercialization, and high stakes deals. Egon Durban, co CEO of Silver Lake, is reportedly playing a lead role in orchestrating the acquisition. With Silver Lake’s involvement, EA gains access to financial sophistication, media partnerships, and strategic scaling opportunities. This is the perfect company to bring the Saudis and Kushner together and make a smooth transition for Electronic Arts.
Together, the trilateral consortium offers EA, and by extension EA Sports, deep pockets, strategic direction, and potentially less pressure from the short term scrutiny of public markets. They will be freer to chase quality over quantity and deliver better games, but that is long term, way down the line. There are questions raised around creative freedom, cost control, and political influence, as well as potential layoffs and studio shutdowns once the deal is fully through in fiscal Q1 2027.
EA Sports Fun Trivia and Facts
- EA Sports is a division of Electronic Arts (EA) that focuses specifically on developing and publishing sports video games. It was officially branded “EA Sports” in 1991.
- FIFA and Madden NFL are the biggest franchises under the EA Sports umbrella, each selling over 100 million copies worldwide.
- The famous tagline “It’s in the game” was first used in 1993, voiced by Canadian voice actor Andrew Anthony. His voice has become one of the most iconic in gaming.
- The Madden NFL series began in 1988, originally titled John Madden Football. It was co developed with input from legendary NFL coach John Madden to ensure realism.
- For a time, EA Sports held exclusive rights to NFL branding, which prevented other companies from using NFL teams and logos in their games.
- There is a real world belief in the “Madden Curse”, a superstition that athletes featured on the game’s cover would suffer injuries or performance declines afterward.
- EA Sports launched the first FIFA International Soccer game in 1993. It has become the best selling sports video game franchise of all time.
- In 2022, EA ended its 30 year partnership with FIFA. Starting in 2023, the series was renamed EA Sports FC.
- FIFA’s Ultimate Team (FUT) mode generates over $1 billion annually in revenue from microtransactions alone, making it one of EA’s most profitable game modes.
- EA Sports once had a popular basketball franchise called NBA Live, which ran from 1994 to 2018. However, it was eventually outpaced by the NBA 2K series. There have been attempts to bring it back.
- EA released a lesser known game called NBA Street, a stylish, arcade style basketball game that gained a cult following in the early 2000s.
- EA Sports also developed the NHL series (Hockey), one of their longest running franchises, and the Tiger Woods PGA Tour, which became the Rory McIlroy PGA Tour after 2014. Their UFC series also became popular after acquiring the license from THQ in 2012.
- EA Sports BIG was a sub label created for more extreme, over the top sports games like SSX (snowboarding), FIFA Street, and NFL Street.
- The motion capture for many EA Sports titles is done with real athletes wearing mocap suits to simulate realistic player movement.
- EA used to make sports games for obscure sports, including cricket, rugby, and even arena football.
- EA Sports titles are used by real world athletes for training and playbook familiarization. Some NFL quarterbacks have publicly said they study formations in Madden. Athletes love playing them as much as the fans.
Jared Kushner FAQs
- Who is Jared Kushner?
Jared Kushner is an American investor, real estate developer, and political advisor. He is best known for being the son in law of U.S. President Donald Trump and for serving as a senior advisor during Trump’s presidency.
- What is Jared Kushner’s educational background?
Kushner earned a Bachelor of Arts in Government from Harvard University in 2003 and later received a J.D./MBA from New York University in 2007.
- What role did Jared Kushner play in the Trump administration?
He served as a senior advisor to President Trump from 2017 to 2021, focusing on areas such as Middle East peace, criminal justice reform, and innovation in government.
- What was Jared Kushner’s involvement in the Abraham Accords?
Kushner was a key architect of the Abraham Accords, a series of agreements signed in 2020 that normalized diplomatic relations between Israel and several Arab nations, including the UAE and Bahrain.
- What is Kushner’s connection to real estate?
Jared Kushner took over his family’s real estate company, Kushner Companies, after his father was imprisoned in 2005. He expanded its portfolio with major property investments, including the controversial purchase of 666 Fifth Avenue in Manhattan.
- What controversies has Jared Kushner faced?
Kushner has been involved in multiple controversies. Most of them are alleged conflicts of interest between his government role and business dealings, security clearance issues, and scrutiny over pandemic related contracts and decisions.
- How did Jared Kushner meet Ivanka Trump?
Jared Kushner met Ivanka Trump in 2005 through mutual friends. They married in 2009 after Ivanka converted to Judaism, and they have three children together.
- What is Jared Kushner’s religion?
Jared Kushner is an Orthodox Jew and has been open about how his faith influences his personal and professional life. He observes Jewish customs and holidays.
- What is Jared Kushner doing now?
After leaving government, Kushner founded Affinity Partners, a private equity firm backed by Saudi investors. He has also remained involved in international diplomacy and investment initiatives in the Middle East.
