GoKawiilWhat just happened? Video game giant Electronic Arts is now officially owned by a consortium led by Saudi Arabia's sovereign Public Investment Fund (PIF). The group is also made up of investment firms Silver Lake and Affinity Partners, the latter founded by Donald Trump's son-in-law, Jared Kushner.
It was revealed back in September that EA had reached a $55 billion agreement to be acquired by the consortium. The company has now announced that the deal has successfully closed.
PIF already owned a 9.9% stake in EA, which it says allows a "deep understanding of EA's unique platform, massive global sports and gaming franchises, and iconic IP."
PIF now has a 93.4% stake in the company and holds minority stakes in Nintendo, Take-Two Interactive, and Activision Blizzard.
For its part, EA says the deal will bring long-term capital, sector expertise, and strategic support.
"This moment recognizes the extraordinary people whose creativity, ambition and passion have made EA one of the world's leading interactive entertainment companies," Electronic Arts CEO and chairman Andrew Wilson said in a statement.
The acquisition has been one of the industry's most controversial, largely due to Saudi Arabia's human rights record. EA has said, however, that it will "maintain creative control" and that its "track record of creative freedom and player-first values will remain intact" under the new ownership.
In October, Democratic senators Blumenthal and Warren wrote a letter to Treasury Secretary Scott Bessent highlighting "a number of significant foreign influence and national security risks" in the proposed transaction, "beginning with the PIF's reputation as a strategic arm of the Saudi government."
The letter notes that the PIF has already made dozens of strategic investments in sports, video games, and other "cultural institutions." The senators say these are more about influence than money, as Saudi Arabia looks to normalize its global image and expand its cultural reach.
Despite the letter, CFIUS ultimately cleared the acquisition, though neither its findings nor any safeguards imposed on the buyers have been made public. There also appears to have been no published response from Treasury or EA to the senators' questions, and no further public action from Warren or Blumenthal before the deal closed.
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