EA Acknowledges Risk Of Selling To Saudi Arabia, Claims It Will Retain Creative Control

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Electronic Arts recently revealed potential risks in a regulatory document, and surprisingly, one of those risks is its own pending $55 billion acquisition by a group of private investors, with Saudi Arabia’s Public Investment Fund (PIF) leading the deal.

The Securities & Exchange Commission requires publicly traded companies to report potential risks to their business every three months. Electronic Arts (EA) recently filed its quarterly report, and this time it included a new risk factor: the potential impact of its upcoming sale to the Public Investment Fund, Silver Lake, and Affinity Partners.

Regarding the merger, EA explained that the resulting uncertainty could make it harder to keep valuable employees, and might lead customers, suppliers, and financial partners to reconsider their relationships with the company.

As a big fan of games from studios like BioWare and Maxis, I was pretty worried when I heard the Public Investment Fund of Saudi Arabia was leading the bid to buy EA. It’s no secret Saudi Arabia has a problematic human rights record, and these EA teams are known for making games with diverse characters and stories. I even saw a post from Patrick Weekes, a writer who sadly got laid off from BioWare earlier this year, and he was concerned the new owners might try to avoid anything they see as ‘political,’ like LGBTQ+ content. He even worried they might shut down BioWare completely if the deal goes through, just to avoid any potential issues. It’s a scary thought, honestly, because I really value the inclusive stories these games tell.

Alinea Analytics’ Rhys Elliott anticipates some Electronic Arts (EA) employees may resign because of human rights concerns related to Saudi Arabia. Several EA staff members have already voiced their opposition to the proposed $55 billion sale in a joint letter, raising worries about potential layoffs and studio shutdowns. This deal is the largest leveraged buyout ever, and EA is responsible for $20 billion of the financing. The company is likely to use its own funds to cover the debt, leading to fears of job cuts and studio closures.

In its recent financial filing, EA doesn’t specifically address humanitarian concerns. Instead, it broadly mentions potential difficulties in attracting and keeping employees if the proposed acquisition by the Public Investment Fund, Silver Lake, and Affinity goes through, framing this as general business uncertainty.

EA claims it will retain “creative control”

Game File’s Stephen Totilo pointed out that EA recently updated a public document outlining the potential effects of a sale to the group of investors. This document states that EA’s core principles – its goals, values, and dedication to its player base – would remain the same.

The filing also shows the investor group is enthusiastic about and dedicated to supporting EA’s employees and positive work environment. Importantly, EA will continue to lead the creative direction of the company, and its history of allowing creative expression and prioritizing players will not change.

Other risks related to the merger

Electronic Arts also warned that the $55 billion deal could prevent them from exploring other potentially beneficial business opportunities.

Electronic Arts (EA) has already spent, and will continue to spend, a considerable amount of money on fees and professional services related to the proposed buyout. Even if the deal falls through, EA will still have to pay these costs, and could also be required to pay a termination fee of up to $1 billion to the buying group.

Additionally, EA cautioned that finalizing the deal might be delayed, could lead to legal challenges from its board members, and may attract objections from shareholders.

Beyond the broader strategic risks already mentioned in their financial reports, Electronic Arts (EA) highlighted a few specific concerns. A large part of EA’s revenue comes from just a handful of popular game franchises, like the EA Sports FC series, which generates substantial income every year. Any issues with this franchise – such as delays, cancellations, losing the rights to make the game, or negative reviews – could significantly impact their earnings. They also noted risks related to external developers not delivering on their promises, or a new gaming console failing to gain popularity.

Hurricanes, earthquakes, and tariffs

The document also points out several potential operational risks, including natural disasters. Electronic Arts (EA) mentioned that its headquarters in Redwood City, California, is located near an earthquake fault line. Additionally, offices in cities like Los Angeles and Orlando could be affected by events like wildfires and hurricanes. A significant weather event could also cause power outages, disrupting EA’s business operations.

Electronic Arts (EA) has identified U.S. President Donald Trump’s trade and immigration policies as potential threats to its business. According to EA, events like these policies – including tariffs and trade restrictions – have strained relationships between the U.S. and countries where EA operates and sells its products, which could negatively affect the company’s finances and operations.

Okay, so here’s how I see it as a gamer: If the U.S. starts charging more for stuff we import, and other countries decide to do the same back to us, it could really mess things up for the whole economy. That means prices could go up on everything, making it harder for companies like ours – and the companies we work with – to stay afloat and keep making the games we all love. It just creates a lot of instability and makes it tough to plan for the future.

The sale of EA to the group of investors is predicted to be finalized in 2026. Some analysts suggest the deal might get approved by regulators more easily because Jared Kushner, a leader at Affinity Partners, is related to former President Trump. For updates on this deal, continue to visit TopMob.

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2025-11-04 00:11