Electronic Arts, the company best known for producing major franchises The Sims, EA Sports, Apex Legends and Mass Effect, is now officially owned by a consortium of investors led by Saudi Arabia’s Public Investment Fund, Silver Lake, and Jared Kushner’s Affinity Partners.
The deal to acquire the company was revealed in late 2025, in a filing confirming it would be 93.4% owned by the PIF, with backing from additional investors to ensure viability. While there was initially some concern about regulatory approval and whether the deal would pass muster, it appears it has gone ahead with minimal fuss.
As confirmed by EA on 4 August, the acquisition of the company is now complete and it’s officially under private ownership.
‘We’re entering this next chapter from a position of strength with partners who share our vision and ambition,’ said Andrew Wilson, Chairman & CEO of Electronic Arts.
‘Together, we’ll invest boldly, accelerate innovation, and build the next generation of games and experiences for the hundreds of millions of players and fans who inspire us every day.’
According to new analysis, this bold future may begin with structural changes at Electronic Arts, as the way the deal was funded reportedly requires significant cost-cutting, which may inspire additional, potentially large-scale layoffs at the company.
Electronic Arts facing more changes – quick links
Why there could be more layoffs at Electronic Arts
As detailed by veteran games journalist Jason Schreier, Electronic Arts will reportedly take on US$18 billion worth of debt as part of its acquisition process, meaning it will need to pay around US$1.8 billion per year in interest.
The deal to acquire Electronic Arts was made as a ‘leveraged buyout,’ meaning most of the cost was covered by money borrowed against the company’s existing assets and predicted future cash flow. As a result, the company is now in debt – and while its annual income is believed to be enough to service payments, further cost-cutting may be required.
‘EA’s annual EBITDA is around US$1.5 billion, which should be enough to service the interest payments,’ Schreier said on Bluesky. ‘But the publisher has told debt investors that it will cut $700 million in annual costs including $170 million in “organisational efficiencies,” per Bloomberg. In other words: mass layoffs.’
Schreier reports that investors were informed of EA’s intention to reduce its annual expenses overall, and while this may encompass an array of changes and cuts within the business, reducing human capital may be a key part of this process. Should this acquisition lead to layoffs, it would not be the first time Electronic Arts has reduced staff numbers to cut its expenses.
In mid-2025, the company reportedly laid off 300 to 400 workers across its business due to ‘long-term strategic priorities’. This included around 100 layoffs at award-winning studio Respawn Entertainment, and the cancellation of at least one major project in development.
In March this year, it was reported that despite the success of EA’s Battlefield 6, there would be additional layoffs across the game’s development team. An exact number was not specified, but it was reported that staff at EA studios Motive, Ripple Effect, DICE and Criterion were all impacted.
As EA grapples with its significant debt and its new ownership, it feels likely that additional change is on the way.
What’s next for Electronic Arts?
Beyond concerns about stability at Electronic Arts, there are plenty of questions about what comes next, and whether internal company changes will be reflected in a public sense.
Per Jared Kushner, Chief Executive Officer of Affinity Partners, there is an appreciation for EA’s stories and legacy across its new investor consortium, and this will guide future developments.
‘EA has created stories, characters and communities that have become part of everyday life for hundreds of millions of people,’ Kushner said. ‘We’re excited to support the company as it continues to reach new audiences, inspire the next generation of creators, and expand the ways people around the world connect through play.’
Egon Durban, CEO and Managing Partner of Silver Lake further highlighted how ‘EA’s innovation fuels imagination and human connection’ while also expressing excitement about ‘what AI can do to enhance game development and player experience’.
As EA embarks on its next steps – which include new developments in the Mass Effect, EA Sports, and The Sims franchises – it will be likely be shaped by the ambitions of its new ownership.
