Inside Saudi Arabia's $55 Billion Takeover of Electronic Arts: The Largest Leveraged Buyout in History Is About to Close

The Largest Leveraged Buyout in History

This acquisition is the largest leveraged buyout (LBO) ever recorded, surpassing all previous records . The enterprise value of $55 billion makes it the biggest all-cash sponsor-led take-private in private equity history .

Financing: $20 Billion in Debt

The deal is financed through roughly $36 billion in equity from the consortium members and $20 billion in debt financing arranged by JPMorgan Chase . That debt load—approximately 6x gross leverage at closing—places enormous financial pressure on the newly private company . Analysts at Berkeley Law note that debt service costs are projected to strain EA's free cash flow for years .

Regulatory Approvals Secured

The deal required and received approvals across multiple jurisdictions:

• US antitrust (HSR Act): The Hart-Scott-Rodino waiting period expired on February 9, 2026, clearing US antitrust review .
• US national security (CFIUS): A July 2026 SEC filing confirmed all required US approvals were obtained, including review by the Committee on Foreign Investment in the United States .
• EU antitrust: The European Commission approved the acquisition under the EU Merger Regulation on July 23, 2026, concluding it would not raise competition concerns .
• EU subsidy (Foreign Subsidies Regulation): A separate approval under the EU's Foreign Subsidies Regulation was granted by July 30, 2026 .
• Brazilian antitrust: A filing with the Brazilian antitrust regulator was also part of the review process .

As of July 30, 2026, EA's SEC filing confirmed: "As of July 30, 2026, all regulatory approvals required to complete the Merger have been obtained" .

Expected Restructuring and Asset Sales

Given the substantial debt burden, analysts widely expect the consortium to pursue significant cost-cutting and restructuring post-close . Likely moves include:

• Studio closures and additional headcount reductions beyond layoffs already in progress
• Sale or spin-off of non-core intellectual property—older or less strategic franchises could be divested
• Increased monetization of EA's core live-service titles (EA Sports FC, Madden NFL, Battlefield) to boost short-term cash flow
• Cost rationalization across global operations to improve EBITDA margins

Some analysts worry the debt load will force EA to become even more aggressive with microtransactions and annualized releases at the expense of game quality .

Strategic Implications for Saudi Arabia

The acquisition is the centerpiece of Saudi Arabia's Vision 2030 strategy to diversify its economy away from oil and build global soft power through gaming . The PIF has already invested in Nintendo, Activision Blizzard, Take-Two, SNK, and the esports organization ESL. EA gives it instant control over franchises like EA Sports FC, Battlefield, The Sims, Apex Legends, and Madden NFL . The PIF previously established the Savvy Games Group with a $38 billion budget specifically to make the kingdom a global gaming hub by 2030 . Critics describe the move as "sportswashing" through gaming—using entertainment investments to shape narratives around Saudi modernization .

CEO Andrew Wilson's $38.6 Million Compensation Controversy

Days before the deal closes, EA disclosed that CEO Andrew Wilson received $38,649,984 in total compensation for fiscal year 2026—a 27% increase from the $30.5 million he earned the prior year . The disclosure sparked intense backlash because:

• EA laid off developers across four Battlefield 6 studios (DICE, Criterion, Ripple Effect, and Motive) in March 2026, despite the game selling 7 million copies in its first three days
• Wilson's compensation was 305 times the median EA employee salary of $126,612
• His package breaks down as: $1.3 million base salary, $28.48 million in stock awards, $6.5 million cash bonus, and $2.37 million in other compensation
• He could also be entitled to an additional $125 million in severance tied to change-of-control provisions as the buyout closes

The optics of a massive CEO payday while hundreds of staff were cut—all as the company is sold to a foreign sovereign wealth fund—drew sharp criticism across the industry .

Industry and Cultural Concerns

The takeover has raised widespread alarm:

• Content direction under Saudi ownership: Many fear the kingdom's conservative cultural and religious norms could lead to censorship or changes in game content—reduced LGBTQ+ representation, altered depictions of women, or restrictions on themes inconsistent with Saudi values. EA has tried to reassure staff that "creative independence" will be maintained, but critics remain skeptical .
• Brain drain and talent retention: Top developers may leave EA rather than work for an entity ultimately controlled by the Saudi government, given human rights controversies surrounding the kingdom .
• National security concerns: The CFIUS review focused on risks of a foreign government gaining access to EA's data on millions of American users and potential influence over a culturally significant media platform .
• Industry precedent: This deal is the largest-ever acquisition of a major Western game publisher by a state entity, setting a precedent that could reshape who controls global interactive entertainment .