After Activision, its rival Electronic Arts might be the one heading for the biggest power-up in gaming business history. According to a recent Wall Street Journal report, the Battlefield maker is in advanced talks to go private in a deal worth roughly $50 billion. This figure would make it one of the largest buyouts the industry has ever seen. EA’s potential buyers aren’t just any investors, as a Saudi investment fund is also a part of it.
Tech-focused private equity giant Silver Lake is leading the talk and former White House adviser Jared Kushner’s Affinity Partners is also reportedly involved. However, as mentioned, the headlining name is Saudi Arabia’s Public Investment Fund — or PIF, for short. PIF already owns about 10% of EA and has been aggressively building a gaming empire through its Savvy Games Group.
In recent years, Saudi money has flowed into a wide range of video game companies. That includes Scopely, the publisher behind Monopoly Go! and the gaming division of Niantic. It acquired a stake in Take-Two Interactive and took majority control of SNK, the Japanese studio behind The King of Fighters and Metal Slug. Saudi investors have also expanded into esports, buying ESL, FACEIT, and the EVO fighting-game tournament.
Should the EA and Saudi deal close, it would rival Microsoft’s $69 billion Activision Blizzard acquisition in 2023. But what does that mean for gamers? Well, one thing for sure, EA going private could actually be a good thing. The company might finally be free to take more chances on ‘riskier’ new games instead of rehashing the same franchise over and over. As it no longer has to constantly stress about hitting sales targets for public shareholders. Imagine more experimental games like the good old days; more Anthem, Mass Effect, Titanfall, Boom Blox, or even SSX and Def Jam.
On the flip side, though, this EA buyout definitely raises questions about Saudi Arabia’s growing influence in the global gaming sphere. Critics of the Middle Eastern kingdom often see these big gaming investments as a way to ‘whitewash’ its oil-rich image and human rights issues. By pouring billions into beloved brands, Saudi Arabia can present a friendlier, tech-centric face while still relying on fossil fuels and obscuring its rights violations.
Gamers online have voiced their concerns. On the popular ResetEra gaming forum, AleeN634 wrote, “If it lets them be more creative I’m all for it but this could go wrong very fast.” ThatCrazyGuy added a stronger take, “Private equity and Saudi blood money? The double whammy s**tburger helper.” On Reddit, Cold_Ball_7670 is skeptical, “This is absolutely insane. Get ready for dog s**t quality games. [Private equity] has never improved a single product.”
The talks are still ‘under way,’ but Wall Street Journal insiders say an announcement could come as early as next week.
