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Electronic Arts (EA), the powerhouse behind titles like The Sims and EA FC, has been acquired for USD55 billion (RM224.95 billion) by a consortium that includes Saudi Arabia's Public Investment Fund (PIF)
Also joining the deal was Affinity Partners, an investment firm headed by Jared Kushner, son-in-law to US president Donald Trump.
This historic leveraged buyout now takes the American publisher private, removing its shares from the public stock exchange.
To finalise the deal, PIF brought USD36 billion (RM147.24 billion) to the table, while borrowing another USD20 billion (RM81.8 billion) from JPMorgan.
This debt will ultimately fall on EA's shoulders, raising concerns about the company's future operations
Bloomberg journalist Jason Schreier noted that the heavy financial burden could lead to "mass layoffs, more aggressive monetisation, and other big cost-cutting measures".
Beyond the financial implications, the acquisition has sparked intense backlash from players and advocacy groups alike.
Communities surrounding games like The Sims, which is celebrated for its inclusivity, are petitioning against the buyout due to Saudi Arabia's anti-LGBTQ+ laws
"Video games are a reflection of culture and people through their storylines, characters, and representation," stated the Players Alliance HQ on their website.
The campaign added that they fear creative decisions could be influenced by outside factors, potentially leading to the censorship of Western politics across major franchises.
Despite the controversy, EA chief executive Andrew Wilson remains optimistic and will retain his leadership role
"I am more energised than ever about the future we are building," Wilson stated to the BBC, highlighting plans to create transformative gaming experiences.
For Saudi Arabia, which controls a RM2.83 trillion fund, owning EA could represent more than just an economic investment.
Author George Osborn pointed out that the acquisition serves as a soft power asset, expanding the country's influence across the sporting and gaming communities.
