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Analysts Warn of Cost Cuts as EA's $55 Billion PIF-Led Buyout Advances

The record leveraged buyout would add about $20 billion of debt to EA, signaling near-term belt‑tightening.

Overview

  • Electronic Arts agreed to a $55 billion take‑private led by Saudi Arabia’s Public Investment Fund with Silver Lake and Affinity Partners.
  • Financing plans would place roughly $20 billion of debt on EA, making it the largest leveraged buyout on record.
  • Analysts cited by Polygon and GameSpot expect short‑term cost reductions to service the debt, with potential layoffs, asset sales and possible divestitures of studios such as BioWare or DICE, though no decisions have been announced.
  • Experts also say private ownership could later support riskier creative projects after an initial focus on dependable franchises and live services.
  • The deal awaits shareholder and regulatory approvals and is not expected to close until 2026, with CEO Andrew Wilson saying he plans to stay as scrutiny of PIF’s human‑rights record persists.