EA's $55bn sale to Saudi-led group closes — $700 million in cuts on the horizon

August 6, 2026 - 03:18

The massive acquisition of Electronic Arts has officially closed, with a Saudi-backed consortium completing its $55 billion purchase of the gaming giant. The deal, which also includes Jared Kushner's Affinity Partners among its investors, takes EA private after months of regulatory review and shareholder negotiations.

As part of the transaction, EA now carries roughly $18 billion in new debt, a figure that has raised eyebrows across the industry. The financial structure of the buyout means the company will need to generate significant cash flow quickly, and internal memos reportedly point to around $700 million in cost reductions planned over the next two fiscal years.

That likely means job cuts, studio consolidations, and a sharper focus on live-service titles and established franchises. EA has already been through several rounds of layoffs in recent years, and employees are bracing for another wave as the new owners look to streamline operations.

The involvement of Affinity Partners, the investment firm founded by Kushner after his time in the Trump administration, adds a political layer to the deal. The fund has drawn scrutiny for its ties to Saudi Arabia's Public Investment Fund, which is the lead backer in this acquisition. Critics have questioned the ethics of a foreign government controlling a major American entertainment company, while supporters point to the capital infusion as a lifeline for a sector facing rising development costs.

For gamers, the practical impact remains unclear. EA's biggest properties, including Madden, FIFA, and Battlefield, are expected to continue, but the new owners have signaled interest in expanding mobile and cloud gaming. The debt load, however, could limit how aggressively the company can invest in new IP or acquire smaller studios.

The deal closes at a turbulent time for the gaming industry, which has seen widespread layoffs and project cancellations across major publishers. Whether the Saudi-led group can stabilize EA's finances without gutting its creative teams is the big question. For now, the company's future rests in the hands of investors who have promised growth but are already planning deep cuts.