Games and finance industry experts weigh in on how EA might change its business with an extra $20bn of debt, and what the real goal of the deal might be.
In September 2025, a consortium led by Saudi Arabia's Public Investment Fund (PIF) offered $55 billion to acquire Electronic Arts. The deal, set to close by June 30, 2026, involves significant debt financing from JPMorgan, making it the largest leveraged buyout (LBO) in history. This move will enable EA to take bigger risks and think long-term without shareholder pressure, but the implications of the acquisition method raise concerns.
With over 30% of the deal financed through debt, EA's balance sheet will see a substantial increase from $1.49 billion to over $20 billion, impacting the company's financial flexibility. The level of debt post-acquisition raises worries about EA's ability to reinvest profits into game development, potentially affecting the quality and innovation of future titles.
Experts are divided on the impact of the LBO, with some viewing debt as a means to enhance shareholder value and enforce fiscal discipline, while others fear it may restrict EA's investment in new game iterations. Concerns also arise regarding potential changes in monetization strategies and cost-saving measures post-acquisition, although opinions differ on the extent of these alterations.
