Electronic Arts has officially completed its transition to a private company after a $55 billion leveraged buyout led by Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners closed on Tuesday.
The deal, announced last September, represents the largest leveraged buyout on record, funded with $20 billion in debt financing. The Saudi PIF will control 93.4 percent of the newly private company.
The transaction marks a significant shift for EA, which has been publicly traded since 1989. The consortium's acquisition signals major capital backing for the gaming giant, though the substantial debt load raises questions about operational decisions ahead.
The $20 billion debt component of the deal eclipses previous leveraged buyout records, positioning EA for substantial restructuring. Large debt loads typically drive cost-cutting measures and strategic portfolio reviews at acquired companies.
EA's transition to private ownership ends a 35-year period as a public entity. The company has faced investor pressure and criticism over loot boxes, live-service game failures, and workplace culture issues in recent years. Private ownership could provide insulation from quarterly earnings scrutiny but also increases pressure to service debt obligations.
Under private control, EA may pursue different strategic priorities than those demanded by public shareholders. The company could accelerate investment in specific franchises, divest underperforming studios, or shift its live-service monetization approach.
The PIF's dominant stake reflects Saudi Arabia's broader push into gaming and entertainment investments. The fund has previously backed other major gaming and media ventures as part of its diversification strategy away from oil dependency.
The deal's completion closes one of the tech industry's largest acquisition processes, with implications for how major gaming publishers balance innovation, profitability, and player satisfaction under different ownership structures.
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