Gaining Global Influence via Gaming: The Electronic Arts Acquisition

Electronic Arts (“EA”), the California-based video game maker responsible for Madden NFL and The Sims, recently announced in September of 2025 that it is going private in a landmark $55 billion deal. (Nicholas Miller & Lauren Thomas, Wall Street Journal). A consortium of financial entities, namely Saudi Arabia’s Public Investment Fund (“PIF”), Jared Kushner’s Affinity Partners investment fund, and the massive private equity fund Silver Lake Partners, are jointly facilitating the leveraged buyout. (Daniel Stone, Center for Economic and Policy Research). As the terms stand, the consortium will acquire 100% of EA and stockholders will be paid a staggering $210 per share, which represents a 25% premium to EA’s share price on September 25, 2025 (valued at $168.32). (Electronic Arts). While the deal has raised eyebrows for being the largest leveraged buyout since TXU (“Texas Utilities”) was acquired for $32 billion in 2007, it has also raised concerns related to national security and foreign influence by Saudi Arabia. (Michael Liedtke and Michelle Chapman, AP News). The acquisition reflects Saudi Arabia’s ongoing effort to expand its global influence through interactive entertainment and sports, while U.S. investors and political allies provide financial and regulatory cover. (The Economist). This post examines the key players of the acquisition, their motives for pursuing such a legendary deal, the regulatory hurdles the acquisition faces at the federal level, and the possible social & political implications of the deal.

Saudi Arabia’s PIF, the country's $924 billion sovereign wealth fund with direct ties to the Crown Prince Mohammed bin Salman, is spearheading the deal as the primary investor. (Daniel Stone, Center for Economic and Policy Research). PIF’s investment portfolio includes the popular football team Newcastle United, a host of various boxing events, and the LIV Golf Franchise. (Nesta McGregor, BBC). PIF has expanded into interactive entertainment in recent years, notably investing in large shares of the makers of Pokémon Go, Nintendo, and Monopoly Go. (Michelle Davis, Bloomberg Law). Saudi Arabia’s move into interactive entertainment and sports appears to be aimed at diversifying an economy heavily dependent on oil and gas exports. (Nesta McGregor, BBC). The remaining consortium members include Affinity Partners, led by Jared Kushner, who is positioned to help secure federal approval; Silver Lake, a major U.S. tech investor; and executives from Goldman Sachs and J.P. Morgan serving as financial advisors. (Michelle Davis, Bloomberg Law). In addition to financial advice, J.P. Morgan will provide $20 billion in debt financing. Id.

On the other side of the deal, EA, an American company founded by former Apple employee William Hawkins, went public just seven years after its launch. (Michael Liedtke and Michelle Chapman, AP News). In its Schedule 14A filing with the Securities and Exchange Commission (“SEC”), EA cites unlocking new opportunities on the global stage and greater creative and operational flexibility to drive innovation as the key implication of the acquisition. (Securities and Exchange Commission).

Despite EA’s enthusiasm and the combined financial might of the consortium, the deal is subject to approval by The Committee on Foreign Investment in the United States (“CFIUS”). (Yigin Shen, Bloomberg). CFIUS, an interagency committee authorized to review transactions involving foreign investment in the United States, operates according to Section 721 of the Defense Production Act of 1950 and evaluates the potential effects of such foreign transactions on national security. (U.S. Treasury). Congressional officials like Richard Blumenthal and Elizabeth Warren, as well legal scholars, argue that given Mr. Kushner’s familial relationship to the sitting president, as well as the president’s own financial benefit and involvement with PIF’s LIV Golf tournaments, the deal is likely to sail through CFIUS. (Michael Liedtke and Michelle Chapman, AP News;  Richard Blumental). Critics at the Center for Economic and Policy Research argue that Affinity Partners’ presence in the deal exists solely to leverage political influence within the Trump Administration to ensure the deal is not blocked despite the concerns related to national security. (Daniel Stone, Center for Economic and Policy Research). The threat posed, they say, relates primarily to the unchecked farming of American user data by a foreign company with little to no regulation as to how that data is used. (Vinita Singh, LAWFARE). Similarly, several sitting Senators, namely Elizabeth Warren (D-MA) and Richard Blumenthal (D-CT), expressed grave concerns related to unrestricted access by an Authoritarian government to American user data and the potential for this deal to facilitate strategic influence within the U.S. by the Saudi Arabian government. (Andy Chalk, PC Gamer). Critics point out that PIF’s investment in EA is unlikely to be financially motivated, as trading prices reflects that the consortium will be purchasing EA for more than $10 billion above its current trading value. (Vinita Singh, LAWFARE).

Absent additional oversight and regulation, the possible implications of the EA deal are grim. Given the modern evolution of videogames from disconnected insular experiences to the multiplayer and interconnected networks seen today, videogames and their creators now serve as massive communications platforms rather than strict entertainment providers. (Mariana Rosenblat, NYU Stern Center for Business and Human Rights). This reality raises a host of questions as to how speech on these platforms may be monitored, how data will be farmed and sold, and how Saudi Arabia plans to use this acquisition in its expansive soft power strategy. Id. Others raise labor-oriented concerns related to anticipated mass layoffs and studio closures if the acquisition is successful. (Bryant Francis, Game Developer). The United Videogame Workers-CWA published a statement calling on regulators to deeply scrutinize this deal and protect jobs. (Communications Workers of America). Furthermore, economists are concerned about the economic uncertainty created and driven by large leveraged buyouts such as this, especially given that the amount of debt used to finance this deal amounts to more than double EA’s FY25 revenue. (Sam Garin, Private Equity Stakeholder Project).

In sum, the $55 billion acquisition of Electronic Arts by a consortium led by Saudi Arabia’s Public Investment Fund, Affinity Partners, and Silver Lake represents both a financial and geopolitical play. The group seeks to expand Saudi Arabia’s economic influence and diversify its global entertainment portfolio while leveraging U.S. partners for financial strength and regulatory access. Because the transaction involves foreign control over a U.S. data-rich company, it must pass review by CFIUS, which, despite national-security concerns, is expected to approve the deal given the current political climate. The acquisition underscores Saudi Arabia’s broader soft-power strategy in gaming and sports, raising questions about data privacy, labor security, and foreign influence in digital platforms. Ultimately, the EA deal exemplifies how modern private equity transactions now operate at the intersection of profit, politics, and global power.