Saudi Arabia’s PIF set to own 93.4% of EA in proposed takeover

• Silver Lake Partners would hold 5.5% of EA, with Affinity Partners taking the remaining 1.1%.
• The consortium is funding the takeover with $36.4 billion in equity and $20bn in debt.
• PIF must contribute about $29bn in new cash after rolling over its existing $5.2bn stake.
• EA’s $55bn proposed acquisition would be the largest all-cash take-private deal in history.

Saudi Arabia's Public Investment Fund (PIF) would own 93.4% of Electronic Arts if the proposed acquisition is finalised.

As reported by the Wall Street Journal, a filing with Brazil’s antitrust regulator showed that Silver Lake Partners will hold 5.5% while the remaining 1.1% will go to Affinity Partners, the US investment firm backed largely by Saudi government funding. 

The consortium will finance the deal with $36.4 billion in equity and $20bn in debt. With PIF rolling over its existing $5.2bn stake in EA, it will need to provide roughly $29bn in new cash to reach its final ownership share.

EA has long been one of the biggest names in games, with franchises such as EA Sports FC, The Sims, Battlefield and Dragon Age shaping the industry for decades. With the company now being acquired, attention has turned to the consortium stepping in as the new owners.

PIF has strong ties to Affinity Partners, as we broke down here. Affinity is a US private equity firm that was founded by US president Donald Trump’s son-in-law and former advisor Jared Kushner.

In 2023, Affinity Partners received $2 billion in investment from Saudi Arabia’s sovereign wealth fund. The company said it has over $5.4 billion under management in total.

Record buyout

The $55bn proposed acquisition of EA was officially announced in September, but did not disclose how ownership would be split. 

The consortium will acquire all of EA in what will be the largest all-cash take-private deal ever. The transaction is expected to close within six to nine months.

Elsewhere, Saudi Arabia’s PIF is under growing financial strain despite its trillion-dollar profile, as much of the fund’s nearly $1 trillion in assets is tied up in illiquid projects.

As a result, PIF representatives have reportedly told global investors they cannot commit major new funding without first improving the performance of existing investments.