Electronic Arts has officially been acquired by Saudi Arabia's Public Investment Fund (PIF) in a $55 billion leveraged buyout, marking the largest such deal in commercial history. This transition means EA will move from being a publicly traded company to a privately held one, a change that officially closed on August 4 after being announced in September 2025 and undergoing regulatory approvals.

The acquisition comes with billions in debt for EA, leading to widespread concerns about potential cost-cutting, including layoffs, studio closures, and game cancellations. While no specific measures have been confirmed, industry analysts suggest that EA may look to "cut excess spending and rationalize the company’s workforce" to manage the debt. Some reports indicate that EA might further invest in AI tools and technologies to reduce development costs and boost profitability.

EA CEO Andrew Wilson, who has led the company since 2013 and overseen a period of significant growth, will remain in his role. However, his long-term tenure is uncertain. Wilson's compensation for the previous fiscal year was reported at $38 million. This acquisition occurs despite EA having laid off developers in the past, including some who worked on the recent "Battlefield 6" title.

Developers at BioWare have expressed fears that the studio, known for its diverse and inclusive storytelling, could be among the first EA-owned entities to face cutbacks. Concerns have also been raised by developers working on "The Sims." In protest of the deal, cosplayers reportedly demonstrated at EA's California headquarters.

While EA's $55 billion acquisition is substantial, it falls short of Microsoft's $75.4 billion purchase of Activision Blizzard, which remains the largest gaming acquisition to date. The PIF has been active in the gaming sector, previously acquiring mobile gaming company Scopely and Niantic's gaming division.

The move to private ownership could offer EA new operational flexibility. Some industry figures believe that no longer needing to answer to public shareholders and quarterly earnings demands might allow EA to focus on long-term strategies and innovation. Fiona Sperry, CEO of Three Fields Entertainment, suggested that a private structure could enable EA to "take some risks" and develop games without the pressure of hitting predetermined deadlines that can compromise design. However, the consortium of investors will undoubtedly impose its own performance targets and financial demands, distinct from those of the public market.

EA's latest earnings report, released on August 3, indicated revenue and profit gains for the April-June quarter. Net bookings reached $1.35 billion, an increase of $51 million year-over-year, though slightly below analyst expectations. Increased sales of extra content for "Apex Legends" and full game and microtransaction sales for "Battlefield 6" contributed to these gains, partially offset by lower sales of "Split Fiction."