The recent deal between Electronic Arts and Saudi Arabia’s Public Investment Fund (PIF) may not be the financial boost EA expected. Reports indicate that EA, known for games like Battlefield, Dragon Age, Apex Legends, and various sports titles, is facing significant debt. While the September buyout by PIF was valued at $55 billion—making it the largest leveraged buyout in history—a new report from The New York Times suggests the PIF’s financial situation isn’t as strong as previously believed and may be experiencing cash flow problems after the EA acquisition.
Saudi Arabia’s PIF may be running out of cash following the massive EA buyout
Buying Electronic Arts would be a significant financial strain for any investment fund, but The New York Times reports that, along with other struggling investments, it could seriously jeopardize this particular fund. U.S. officials have already expressed concerns about the fund’s purchase of EA, warning that the personal data of 700 million Americans could fall into the hands of a government with a history of repression. Some are even calling it a national security risk. Despite these concerns, the Crown Prince of Saudi Arabia, Mohammed bin Salman, visited the White House last week.
Saudi Arabia’s main investment fund has been actively involved in the video game industry for quite some time. In 2024, Riyadh, the capital city of Saudi Arabia, hosted the Esports World Cup – a record-breaking esports event. Beyond this, they’ve made numerous other investments in video games, and were even close to investing in Embracer Group before that deal was cancelled.
According to a New York Times report, numerous investments made by the Public Investment Fund (PIF) are facing difficulties, and the potential issues aren’t limited to the proposed EA acquisition. While the success of the partnership remains uncertain, PIF might not provide the financial stability that EA was hoping for. Reports suggest that PIF is currently undergoing internal restructuring. This comes after the crown prince dismissed the leader of Neom, a large-scale project aiming to transform a region of Saudi Arabia into a futuristic city with features like robotic workers, a ski resort, and artificial beaches. PIF also owns a coffee company and an electric vehicle startup that are both struggling, as well as a cruise line that currently only operates one ship.
It’s unclear what the future holds for Electronic Arts. While their parent company, PIF, will probably manage to keep the business going, not all of their investments will likely succeed. EA says it will maintain creative control, but it remains to be seen if that promise holds up over time. Concerns about layoffs and restructuring at EA already existed, and this situation could make them more likely.
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2025-11-25 20:32