“Mass layoffs” expected at EA, as $55bn buyout by Saudi Arabia’s PIF and Donald Trump’s son-in-law officially goes through

Electronic Arts has completed its $55 billion acquisition by a consortium led by Saudi Arabia’s Public Investment Fund (PIF), which holds a 93.4% stake. The deal also involves investment firms Silver Lake and Affinity Partners (led by Jared Kushner). EA is now private after 36 years as a publicly traded company and has been delisted from the NASDAQ.

Shareholders and employees receive $210 per share in cash. The acquisition is structured as a leveraged buyout, meaning the deal is partially funded with approximately $18 billion in borrowed money—reportedly the largest leveraged buyout in history.

The financial structure has significant implications: EA will face roughly $1.8 billion in annual interest payments on the debt. To manage this, the company has informed investors it will cut $700 million in annual costs, with $170 million coming from “organizational efficiencies”—a term that typically signals layoffs. Multiple reports, citing Bloomberg’s Jason Schreier, indicate “mass layoffs” are expected in the near term.

Leadership changes accompany the transition to private ownership. CEO Andrew Wilson promoted Cam Weber to chief studios officer and David Tinson to chief operating officer, both also named company presidents. Wilson emphasized the need for “bold creativity and exceptional execution” in this new phase.

EA leadership stated the company will maintain creative control under its new owners and that the consortium is committed to investing in capabilities, though these assurances have not quelled concerns about the financial pressures from the acquisition’s debt burden.

“Mass layoffs” expected at EA, as $55bn buyout by Saudi Arabia’s PIF and Donald Trump’s son-in-law officially goes through

Sources