The gaming world was rocked by the massive news that Electronics Arts (EA), makers of EA Sports FC and The Sims, is being sold for $55 billion (£41 billion).
The buyer is a consortium led by Saudi Arabia’s Public Investment Fund (PIF), a deal described as the largest buy-back in Wall Street history.
The acquisition, which significantly surpasses PIF’s previous sports ventures like Newcastle United and LIV Golf, is drawing immediate scrutiny.
Experts view the deal as a major victory for Saudi Arabia’s “soft power” strategy, aimed at using high-profile entertainment to shape its global image and deflect criticism over its human rights record.
George Osborn, editor of Video Games Industry Memo, called it an “enormous win,” noting the country seeks to associate itself with “fun.”
Beyond image, the move is a key part of Saudi Arabia’s effort to diversify its economy away from oil and gas. The nation is heavily invested in building its esports economy to cater to its youthful population.
While the capital infusion is expected to “turbo-charge” EA for future growth, the PIF’s acquisition of “control” over the company allows the Saudi state to “drive the direction of that business towards its goal.”
