EA are about to be bought for $50 billion by Saudi Arabia and Jared Kushner's investment firms, claims report

Battlefield, Apex and Mass Effect publishers successful "advanced talks" implicit rumoured deal

Battlefield, EA Sports FC and Apex Legends publishers Electronic Arts are holding "advanced talks" to spell backstage with a valuation of $50 cardinal aft 35 years arsenic a nationalist company, according to reports this weekend.

If rumour respire true, the buyers are a radical of investors that see backstage equity steadfast Silver Lake, Saudi Arabia's Public Investment Fund, and Affinity Partners, the Saudi-backed concern steadfast founded by Donald Trump's son-in-law Jared Kushner.

The study comes via the Wall Street Journal (paywall) and Reuters, the second of whom mention "sources acquainted with the matter". They assertion that if the woody goes through, it could hap this week.

If the woody does happen, it volition mean that BioWare, Criterion Games, DICE, Motive Studio, and Respawn Entertainment are present partially overseen by the concern limb of a authorities that oppresses women and queer people, executes journalists and imprisons governmental dissenters. Mass Effect and Dragon Age developers whitethorn find the imaginable particularly unwelcome, fixed the absorption their games spot connected divers casts.

A now-legendary, much-memed Electronic Arts people advertisement from not agelong aft the company's founding successful 1983. | Image credit: Jordan Maynard / Chris Hecker

Reuters framework the investments arsenic portion of Saudi Arabia's "Vision 2030" strategy to diversify the Kingdom's heavy oil-reliant economy. The PIF were rumoured to beryllium discussing a $2 cardinal concern woody via their subsidiary Savvy Games with the infamously acquisition-happy Embracer Group immoderate years ago. These talks reportedly fell done successful May 2023, triggering a brutal play of wide layoffs and cancellations.

More recently, the PIF acquired Scopely, US publishers of licensed games similar Marvel Strike Force and the existent developers of Pokemon Go. They person besides funded the instauration of a caller Assassin's Creed: Mirage DLC battalion acceptable successful the historical metropolis of AlUla, prompting interior disapproval from Ubisoft developers.

In summation to investing successful games publishers, the PIF person poured a batch of wealth into esports, acquiring companies and hosting tournaments successful what has been wide styled a lawsuit of 'sportswashing' the Kingdom's abysmal quality rights record. Earlier this month, the Public Investment Fund-backed institution Qiddiya became co-owner of warring crippled tourney Evo. Savvy Games already ain ESL FACEIT Group, a merger of 2 esports organisers, who are organising adjacent year's much-trumpeted Esports World Cup successful Riyadh.

As for the different 2 concern groups who are allegedly enactment to the EA deal, Silver Lake are a 1999-founded steadfast who erstwhile owned Skype, and who person besides sunk a fewer doubloons into crippled motor institution Unity and PC shaper Dell. Affinity Partners were founded by Kushner successful 2021, and person received billions from the PIF, with Saudi ruler Mohammed bin Salman personally intervening to propulsion the concern through. Kushner is the taxable of scrutiny arsenic to whether his Saudi partnerships person influenced his enactment successful the US government.

The rumoured EA buyout would proceed the past decade's consolidation of crippled developers and publishers successful the hands of a prime fewer megacorporations. Microsoft completed their acquisition of Activision-Blizzard past year, adding Call of Duty, Diablo and Candy Crush Saga to the Xbox haggis. The world's largest videogame publisher, Tencent, person scooped up large outfits similar Riot Games, Sumo Group and Funcom, portion acquiring bulk stakes oregon sizeable number shares successful the likes of Epic, Krafton and Paradox Interactive. Tencent precocious funnelled a immense reservoir of wealth into Ubisoft arsenic portion of the latter's wider firm restructuring to absorption connected Assassin's Creed, Far Cry and Rainbow Six.

EA person seen "better-than-expected" gross maturation lately, but they've had immoderate important disappointments successful the past twelvemonth oregon two, and are presently betting alternatively a batch connected Battlefield 6, with executives allegedly hell-bent connected attracting 100 cardinal players. Whatever their existent fortunes, it seems plausible that layoffs volition travel immoderate buyout, arsenic the caller overlords question to 'optimise' their investment.

I'll ligament EA a petition for comment.