Recent filings suggest that Saudi Arabia’s Public Investment Fund (PIF) will hold more than 90% of Electronic Arts (EA) based on the current acquisition plan. This deal has been a subject of much discussion and speculation within the gaming community and beyond, particularly regarding its potential implications for EA and the broader gaming industry.

Following a leaked report from the Wall Street Journal, EA confirmed it would be purchased for $55 billion, marking an unprecedented leveraged buyout. If the acquisition proceeds as intended, EA’s stocks may no longer be available for public trading, transferring full ownership to a select group of major investors, which includes the PIF as well as private equity firms Silver Lake and Affinity Partners. However, it appears that the PIF will command a significantly larger ownership portion than its counterparts.

An additional report from the Wall Street Journal claims that under this deal, the PIF’s stake may rise to 93.4%. The remaining shares will be divided between Silver Lake, which is expected to take 5.5%, and Affinity Partners with 1.1%. This acquisition could require approximately $29 billion from the PIF, which already possesses a $5.2 billion stake in EA.

This acquisition is part of a wider trend of Saudi Arabia increasing its foothold in the gaming sector, signaling its ambitions in this rapidly growing industry. However, the deal is not without scrutiny. Various regulatory approvals are necessary from multiple countries due to EA’s significant global presence, which might present hurdles to closing the acquisition.

Concerns have been raised, particularly from U.S. senators regarding the potential national security risks linked to Saudi ownership of EA, as it could afford access to sensitive data and influence on a broad audience. It remains uncertain how these concerns might impact the acquisition process, echoing past challenges faced by Microsoft during its own buyout attempts.

As the regulatory process unfolds, more documentation and details regarding the acquisition are expected to become available. Fans of EA will have to wait and see how this transition evolves in the coming months.