The $55bn private acquisition of EA is expected to run smoothly, the Financial Times has reported, due to the influence of Jared Kushner and Saudi Arabia on The White House.
The acquisition announced yesterday will see a group of investors comprising Saudi Arabia’s Public Investment Fund, and investment firms Silver Lake and Affinity Partners, acquiring EA, the publisher known for its sports games, BioWare’s RPGs, The Sims, and many more.
Though the acquisition won’t be completed until Q1 FY27, a report from The FT suggests it won’t face much opposition.
That’s due to Saudi Arabia being considered a key ally to the US, as well as the involvement of President Trump’s son-in-law Kushner, CEO of Affinity Partners.
“Kushner has a personal relationship and he has deep ties in Saudi Arabia. He is very comfortable operating in the Middle East. It created a basis of trust,” a person briefed on the talks told the FT.
Another source stated: “We are in a regulatory environment that is welcoming of [Saudi Arabia]. We are not in what was the previous regime.”
“What regulator is going to say no to the president’s son-in-law?” stated another source close to the inner workings of the Trump administration.
The involvment of Saudi Arabia’s PIF is controversial, due to the country’s ruler Prince Mohammed bin Salman chairing the fund. He’s been blamed by the CIA for the assassination of Washington Post journalist Jamal Khashoggi, and has upheld the country’s notoriously poor human rights record.
While the last big video game acquisition – Microsoft’s acquisition of Activision Blizzard – was met with opposition, it seems this latest deal for EA will be less contested.
Eurogamer has contacted the US Federal Trade Commission for comment on EA’s private acquisition.
In a further report from the FT, it’s suggested the deal is a huge bet that AI can significantly cut EA’s operating costs.
The $55bn buyout is backed by $36bn in equity and $20bn in JPMorgan debt, which EA will need to cover. AI will therefore be a key factor in cutting costs, according to sources involved in the transaction.
Last year, EA CEO Andrew Wilson stated AI is “the very core of our business” at the company’s Investor Day 2024. “For years we have talked about our games delivering experiences that are always new and different,” he said. “We predict that with generative AI we will truly be able to fulfil this promise for billions of people for billions and billions of hours.”
One area of AI innovation for the company is efficiency, which Wilson described as not just about cost saving but “doing what we do today faster, cheaper, and at a higher quality”.
With the growing reputation of AI tools being used across the games industry, no doubt this presentation proved influential in the eventual acquisition by private investors.
In a statement to employees yesterday, Wilson stated EA’s “values and our commitment to players and fans around the world remain unchanged”. However, the deal has sparked fear among fans for the future of EA’s most queer-friendly franchises, including The Sims, Mass Effect, and Apex Legends, due to the involvement of Saudi Arabia.