Electronic Arts Investors Endorse Historic $55B Saudi Acquisition

• Electronic Arts shareholders overwhelmingly approved a $55 billion acquisition by a Saudi Arabia-led investor group.
• Shareholders will receive $210 per share, representing a 25% premium to September 2025 prices.
• Regulatory approval remains the final hurdle amid scrutiny of foreign ownership and political connections.
• The leveraged buyout involves substantial financial risk through a $20 billion loan.

Electronic Arts (EA) stands at a transformative crossroads after shareholders endorsed one of gaming's largest-ever transactions. Investors overwhelmingly backed the $55 billion takeover by Saudi Arabia's Public Investment Fund consortium, securing a substantial premium. This landmark deal now advances to regulatory review amid scrutiny of foreign ownership stakes in major U.S. technology assets. The outcome could reshape the global gaming landscape while exposing EA to new financial risks.

Why Did EA Shareholders Approve the Saudi-Led Acquisition?

EA shareholders demonstrated strong support with over 201 million votes favoring the transaction. The attractive $210 per share premium offered decisive motivation, representing a 25% gain over pre-announcement valuations. Investors recognized Saudi Arabia's strategic commitment to gaming through Savvy Games Group and previous stakes in companies like Capcom and Nintendo. The consortium's political connections through Jared Kushner's Affinity Partners signaled confidence in regulatory approval prospects. That backing outweighed concerns about the substantial $20 billion loan underpinning this leveraged buyout.

Shareholder approval stemmed from clear financial advantages and strategic alignment. EA gains access to Saudi capital for accelerating game development and expanding into high-growth markets like the Middle East. The premium cash offer provided immediate shareholder value without exposure to long-term execution risks. This transaction reflects the accelerating trend of sovereign wealth funds targeting gaming content libraries. Major investors accepted the trade-off between premium valuation and ownership transition challenges.

What Regulatory Challenges Face EA's $55 Billion Deal?

The acquisition now enters rigorous regulatory examination. U.S. authorities will scrutinize foreign control implications since PIF would hold 93.4% ownership post-acquisition. Concerns about Jared Kushner's involvement add political sensitivity. The Committee on Foreign Investment in the United States (CFIUS) faces pressure to evaluate national interests thoroughly. Still, most analysts expect eventual approval given diplomatic ties between Saudi and U.S. leadership.

Approval timing remains uncertain despite political connections. The transaction could close within 3-6 months if regulators accept structural assurances about EA's operational independence. CEO Andrew Wilson will remain post-acquisition and maintains company values won't change. U.S. and EU regulators share concerns about Saudi influence over American creative content. Delays might occur if review bodies request additional concessions about governance structures. Markets project closure by mid-2026 absent significant objections.

How Will Saudi Ownership Impact EA's Future Strategy?

Saudi ownership presents complex integration challenges and opportunities. Access to PIF's capital could accelerate EA's expansion into emerging markets where gaming revenues grow over 15% annually. The privatization shields development teams from quarterly earnings pressures, potentially boosting creative output. However, significant risks include talent attrition from cultural integration issues and reputation concerns. Retention challenges could affect key franchises like FIFA and Apex Legends if developers resist Saudi oversight.

Financial exposure remains substantial through the $20 billion acquisition loan. Saudi Arabia's sportswashing strategy via gaming investments provides a backstop against financial instability. The deal aligns with Vision 2030 economic diversification goals beyond oil. That strategic importance suggests long-term commitment despite immediate leverage risks. EA's strong position—with $1.95B quarterly revenue and 70% from live services—justifies Saudi confidence. Industry consolidation may pressure competitors to pursue similar scale-driven transactions.

Human rights controversies create reputational shadows. PIF ties to Crown Prince Mohammed bin Salman—linked to Jamal Khashoggi's murder—raise ethical concerns. Advocacy groups warn gaming investments could distract from systemic rights violations. This perception challenge could impact player sentiment and recruitment despite leadership assurances about creative independence. Post-acquisition success requires balancing Saudi expansion ambitions with EA's existing corporate culture and Western market expectations.