COLMA, CALIFORNIA – SEPTEMBER 29: Digital Arts video video games are displayed at a Goal retailer on September 29, 2025 in Colma, California. Online game maker Digital Arts is being acquired in a $55 billion cope with non-public fairness agency Silver Lake Companions, Affinity Companions, and Saudi Arabia’s sovereign wealth fund PIF. The deal might turn out to be the most important non-public equity-funded buyout in historical past. (Picture by Justin Sullivan/Getty Pictures)
Justin Sullivan | Getty Pictures Information | Getty Pictures
As online game big Digital Arts (EA) begins its transition to turning into a personal firm, analysts are optimistic concerning the $55 billion deal — with one even calling it “a giant win” for shareholders.
On Monday, EA introduced will probably be acquired in an all-cash deal by the Public Funding Fund of Saudi Arabia, Silver Lake, and Affinity Companions. Shareholders will obtain $210 per share, a 17% premium over EA’s all-time excessive in August.
Although there’s a 45-day window to permit for different proposals, Morningstar Senior Fairness Analyst Matthew Dolgin wrote in a Tuesday observe that the deal is “all however sure to shut” with none regulatory hurdles, given the Saudi authorities’s favorable relationship with the present U.S. administration, and a beneficial premium for shareholders.
However whereas Wall Avenue could also be celebrating, the gaming neighborhood may not share the identical sentiment. For years, avid gamers have criticized EA’s lack of innovation and aggressive monetization techniques.
Poor gaming road cred
EA’s portfolio consists of blockbuster franchises like EA Sports activities FC (previously FIFA), The Sims, and Battlefield. However regardless of sturdy financials — EA has posted operational earnings yearly since 2015 — it has typically drawn criticism from avid gamers.
In 2012 and 2013, EA was voted “Worst Firm in America” by the now-defunct shopper advocacy web site, Consumerist.com. In 2018, USA In the present day ranked it the fifth most hated firm within the U.S. A lot of the backlash stemmed from its reliance on live-service fashions, microtransactions, and controversial mechanics like loot containers.
Gaming glossary:
Stay service video games: Video games which can be launched and up to date constantly, generally with restricted time updates. Updates could also be paid or free.
Microtransactions: Purchases of in-game gadgets that customers make with actual cash. Objects may be both purely beauty or enable gamers to advance extra shortly by way of a recreation.
Loot containers: A container of random digital gadgets which can be unknown to the participant earlier than opening them, and may be bought with in-game foreign money or actual cash.
EA has additionally confronted criticism for prioritizing sequels over new mental property. In a 2024 inside observe reported by IGN, CEO Andrew Wilson said that EA would “double down on owned IP, sports activities, and big on-line communities.”
That very same yr, on-line journal Inverse wrote: “Maybe the most typical grievance is that EA fails to innovate,” citing overpriced Sims 4 content material packs, repetitive sports activities titles, and underwhelming sequels to legacy franchises.
The corporate additionally had essentially the most downvoted touch upon Reddit, after it tried to defend its stance over the very long time taken to unlock content material and characters within the 2017 Star Wars Battlefront II, even after shopping for the deluxe version of the sport.
The sport’s loot field mechanics — whereas not unique to EA — additionally led to backlash from avid gamers, triggering European regulators to research whether or not the characteristic constituted playing.
In November 2017, U.S. Senator Chris Lee known as it a “predatory follow” from EA. “This recreation is a Star Wars-themed on-line on line casino designed to lure youngsters into spending cash. It is a lure,” he mentioned in a press convention.
A inventive reset or extra of the identical?
With EA now not beholden to quarterly earnings studies, avid gamers could hope the corporate will take extra inventive dangers. However analysts are divided.
“After all, the corporate will likely be able to discover extra inventive video games,” mentioned Michael Pachter, managing director at Wedbush Securities. “However that is not actually one thing they’re significantly good at — particularly if present administration stays in place.”
Pachter expects EA to double down on its live-service mannequin and considerably develop its cellular gaming enterprise below the PIF.
“I think the Saudis will roll out new cellular video games for all EA Sports activities, Sims and Battlefield titles,” Patcher mentioned, highlighting that the PIF, by way of Savvy Video games Group, owns Scopely and Niantic, “two of the most effective cellular recreation publishers within the enterprise.”
Michael Futter, founding father of online game trade consultancy F-Squared, echoed this view. He famous that the deal will saddle EA with $20 billion in debt, pushing it to lean more durable on secure income streams like “microtransactions, battle passes, FOMO-style [fear of missing out] rotating stock [of] in [game] storefronts.”
A rotating stock in a recreation storefront normally refers to gross sales of things or battle passes inside a restricted time, attractive gamers to purchase them shortly or miss out.
Gaming glossary:
Battle cross: A tiered system which rewards gamers with digital gadgets for finishing varied goals in gameplay, and could also be provided in a restricted time interval. Some battle passes may be purchased with actual cash.
Futter believes EA will consolidate round its most secure franchises, reminiscent of The Sims, Battlefield, and sports activities titles, relatively than experiment with new IPs.
“The debt hanging over their head is not prone to create a shift in technique. As a substitute, it would doubtless see management entrench themselves within the titles they suppose have the most important income potential, even when these additionally carry the most important threat.”
He added, “I do not understand how EA goes to service this debt with out important layoffs, studio closures, and probably IP sell-off.”
I do not understand how EA goes to service this debt with out important layoffs, studio closures, and probably IP sell-off.
Michael Futter
Founder, F-Squared
However not all analysts are pessimistic. Nick McKay of funding banking platform Freedom Capital Markets believes the buyout might enhance the long-term high quality of EA’s video games.
“It offers EA with the chance to step again from the general public highlight and put money into video games they’re enthusiastic about,” McKay mentioned. It will enable for EA to strive new issues with out being “penalized” by shareholders if a recreation did not do nicely, he identified. “You do not have to fret a few important drop in your valuation, as a result of… one in every of your new titles hasn’t labored. So truly, I believe it could possibly be a great factor for the long run high quality of the discharge slate,” McKay mentioned.
David Cole, CEO of DFC Intelligence, added that within the quick time period, EA could think about promoting off a few of its IPs to handle its debt. He cited the “Command and Conquer” collection for example of a franchise with historic worth however restricted business scale.
The final mainline Command and Conquer entry got here out in 2012, with solely a cellular recreation after that in 2018.
However in the long run, the corporate could have the liberty to discover some extra choices and take some extra threat, he mentioned.
