"Problematic for the industry" or "long-term investment"? The games industry reacts to EA's historic $55 billion deal: Part two

• “As a private company with deep-pocketed sponsors, EA can make bold longer-horizon bets in EA SPORTS FC, Madden, and new services.” - Maria Kochmola.
• “I believe it could be problematic for the industry if too much ownership ends up in one part of the world.” - Christian Lövstedt.
• “The reality is that EA will now be both less transparent and less publicly accountable.” - Oscar Clark.

This week's big news is that Electronic Arts is to be acquired for $55 billion by a consortium led by Saudi Arabia’s Public Investment Fund, Silver Lake, and Affinity Partners in an all-cash deal.

But what does it mean for EA, its employees and the wider games industry? We caught up with our Mobile Mavens to get their perspectives on the deal and what comes next. You can find more thoughts in part one here.

Oscar Clark

Chief Strategy Officer at Fundamentally Games

Whilst the Electronic Arts $55 billion buyout marks the largest private-equity deal in gaming history. I’m left with many questions. 

Going private means that EA will be less subject to the relentless quarterly reporting demands and that could theoretically help them look further ahead. In an industry where AAA games are taking 3-5 years to develop, this constraint affects the ability for any team to take big risks.

BUT does going private change that?  

The reality is that EA will now be both less transparent and less publicly accountable. Without that scrutiny, the risk rises of more aggressive tactics from layoffs to controversial revenue models. Public-to-private buyouts typically result in employment falling by 10–13% over two years as debt and efficiency targets take priority. Not great news given the pattern of layoffs over the last couple of years, even though EA say that there will be "no immediate changes".

There is some evidence that shows firms in these situations can innovate more effectively in private hands, however, that will depend on whether the owners prioritise creative risk or simply maximise cash flows. Saudi Arabia’s ambitions are key here.

Through its Savvy Games Group and Nine66 initiatives, the kingdom has spent billions acquiring global firms from Scopely, ESL, FACEIT, and now EA but my impression is that the domestic capacity has yet to reach the same level as seen in even other MENA territories despite considerable investment. But perhaps I'm out of data, given Steer Studios successfully releasing Grunt Rush. 

Overall, I have to admit to being sceptical that without the diversity of creativity and commercial thinking we see in other territories that this investment will lead to greater success for EA. However, I am convinced that investing in games is a fantastic strategy to transform the local economy even beyond the impact of games.

Maria Kochmola

Co-founder and Managing Partner at The Games Fund

EA’s $55B take-private by PIF, Silver Lake, and Affinity Partners is a watershed moment - the largest LBO in gaming and a 25% premium that underscores the enduring value of top-tier live-service IP. 

As a private company with deep-pocketed sponsors, EA can make bold longer-horizon bets in EA SPORTS FC, Madden, and new services - plus expand in growth regions like MENA - without quarterly pressure. 

The flip side is execution under leverage: keeping talent, renewing major sports licenses on favourable terms, and navigating geopolitical scrutiny (including potential CFIUS review) will be critical. Ultimately, this deal signals a re-rating of premium games assets and could pull more private capital into the sector.

Evelin Herrera

Founder, Apps and Games M&A

If they were able to pull off the largest all-cash sponsor-led take-private investment in history, I’m honestly excited to see how much they invest in growing the company and which verticals they prioritise.

Worth highlighting this combination: Andrew Wilson who has nearly tripled EBITDA, PIF's focus on mobile gaming, and a leading portfolio including Savvy Games Group and EA, plus stakes in Nintendo, Take-Two, Embracer, Activision Blizzard, Tencent, Unity, and others. This also draws attention from the finance sector to gaming. 

I'd also love to understand how Trip Hawkings is feeling right now. Even though he sold the company a long time ago, how might it feel that your creation goes that far? I don't think many creators and builders have the chance to see the results of the empires they created.

Wengfeng Yang

SVP at White Paper Games

A 50x PE multiple is reserved for strong IP.

Reskin-heavy mobile studios should take note: quick reskins can generate short-term cash, but enduring value lies in building IP.

Eden Chen

CEO at Pragma

EA was a rumored buyout candidate for a long time, with Andrew Wilson’s plans to sell the company being common knowledge across the games industry. The involvement from Saudi Arabia’s Public Investment Fund is unsurprising, given the country’s e-sports ambitions and investment in sports franchises. 

In general, we’re seeing a significant amount of interest from private equity funds targeting long-lived game franchises. Injecting that kind of liquidity into the ecosystem is a fundamentally positive development for all developers as liquidity has implications for early stage funding as well (the area that is most distressed in games today).

It’s notable that the investment did not come from a major tech platform (though I’m sure Apple, Amazon, and Netflix took a look!). This would have accelerated market consolidation and moved the power away from developers. I’m relieved that’s not the case!

Christian Lövstedt

General Manager at Midjiwan

I believe it could be problematic for the industry if too much ownership ends up in one part of the world. My hope is that this acquisition is seen as a long-term investment that helps EA’s IPs and studios grow, with a focus on developing new and innovative games instead of only being run as a short-term cash flow business.