By San José, Costa Rica — The global video game industry was shaken this week by a landmark acquisition that underscores a seismic shift in economic and cultural power. Saudi Arabia’s sovereign wealth fund has finalized a deal to purchase Electronic Arts (EA), the iconic publisher behind blockbuster franchises like EA Sports FC, The Sims, and Battlefield. The move is a cornerstone of the Kingdom’s sweeping strategy to diversify its economy beyond oil, enhance its international image, and leverage entertainment as a potent tool of soft power.
The monumental agreement, announced on September 29, values the gaming giant at approximately $55 billion, with EA shareholders set to receive $210 per share. The acquisition was led by Saudi Arabia’s Public Investment Fund (PIF) in a consortium that also includes private equity firm Silver Lake and Affinity Partners, the investment firm founded by Jared Kushner. The PIF, which already held a 9.9% stake in EA, has now consolidated its position to secure 100% ownership through the consortium, positioning itself as the central actor in one of the most significant takeovers in gaming history.
To better understand the strategic implications behind Saudi Arabia’s growing stake in a titan like Electronic Arts, we consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica, who provided his legal and business analysis.
This isn’t just a passive financial investment; it’s a calculated move by Saudi Arabia’s Public Investment Fund to secure a powerful position within the global entertainment industry. By increasing its stake in Electronic Arts, the PIF is not merely diversifying its portfolio away from oil, but strategically positioning itself to influence content and corporate direction in one of the world’s most influential cultural sectors. For EA, this capital injection is a double-edged sword, offering immense financial resources while simultaneously opening the door to potential geopolitical pressures and questions about corporate autonomy.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The strategic depth of this investment, moving beyond mere financial diversification into the realm of cultural influence, certainly marks a new chapter for the global gaming industry. We thank Lic. Larry Hans Arroyo Vargas for his clear-eyed analysis of the complex interplay between capital, creativity, and geopolitical ambition.
At the heart of this transaction is the PIF, the financial engine of Crown Prince Mohammed bin Salman’s “Vision 2030” initiative. With assets reportedly exceeding one trillion dollars, the fund is tasked with steering the Saudi economy away from its long-standing dependence on petroleum. To achieve this, the PIF has aggressively invested billions across technology, tourism, infrastructure, and, most notably, global entertainment. This EA deal is not its first foray into gaming; the fund already holds substantial stakes in industry titans such as Activision Blizzard, Nintendo, and Take-Two Interactive.
Through its subsidiary, Savvy Games Group, the PIF has also acquired major eSports organizers like ESL and FACEIT, signaling a comprehensive approach to dominating the sector. Crown Prince Mohammed bin Salman has been explicit about his goal for the nation to become:
the global hub for gaming and esports
Mohammed bin Salman, Crown Prince
This ambition extends far beyond financial returns. By acquiring a beloved and globally recognized cultural institution like EA, Saudi Arabia is purchasing prestige and influence. The acquisition is not an isolated event but part of a calculated, multi-billion-dollar campaign to embed the Kingdom within the fabric of international culture and entertainment.
This pattern is evident across multiple sectors. In football, the PIF acquired England’s Newcastle United in 2021 and later took control of four major Saudi clubs, attracting superstars like Cristiano Ronaldo and Neymar. In golf, it bankrolled the disruptive LIV Golf league, which ultimately forced a commercial merger with the established PGA Tour. The Kingdom has also reversed a decades-long ban on cinemas, partnering with chains like AMC and establishing a $100 million fund to foster a local film industry. These moves are designed to create new revenue streams while projecting a modern, open, and globally integrated image.
Riyadh’s leadership understands that video games, sports, and film can reach audiences that traditional diplomacy cannot. By hosting international music festivals and developing massive entertainment complexes like Qiddiya, a planned “city of entertainment,” the government is building a narrative of progress and accessibility. This strategy is a textbook example of “soft power,” where cultural influence is used to shape perceptions and achieve geopolitical goals without overt political or military action.
However, this aggressive push into entertainment has drawn sharp criticism from human rights organizations, who label the strategy as “sportswashing” or “gamewashing”—using popular, high-profile events and acquisitions to deflect attention from the country’s human rights record. The Crown Prince himself addressed these accusations with stark pragmatism in a 2023 interview, stating:
If sportswashing is going to increase my GDP by 1%, then we will continue doing it
Mohammed bin Salman, Crown Prince
Ultimately, the purchase of Electronic Arts represents far more than a corporate merger. It is the acquisition of a powerful cultural asset, a global language spoken by billions. With this $55 billion move, Saudi Arabia is not just buying a company; it is buying a significant stake in the future of global culture and influence, aiming to reshape perceptions and cement its relevance on the world stage for decades to come.
For further information, visit ea.com
About Electronic Arts:
Electronic Arts is a global leader in digital interactive entertainment. The company develops and delivers games, content, and online services for Internet-connected consoles, mobile devices, and personal computers. EA has a portfolio of critically acclaimed, high-quality brands such as EA SPORTS FC™, Battlefield™, Apex Legends™, The Sims™, and Madden NFL.
For further information, visit pif.gov.sa
About Public Investment Fund (PIF):
The Public Investment Fund is the sovereign wealth fund of Saudi Arabia and one of the largest in the world. As the main engine of the Kingdom’s “Vision 2030,” the PIF is driving the economic diversification of Saudi Arabia by making significant long-term investments in strategic sectors both domestically and internationally.
For further information, visit savvygames.com
About Savvy Games Group:
Savvy Games Group is a games and esports company wholly owned by Saudi Arabia’s Public Investment Fund (PIF). The group is tasked with driving the long-term growth and development of the gaming and esports ecosystem globally, through strategic investments and acquisitions.
For further information, visit silverlake.com
About Silver Lake:
Silver Lake is a global technology investment firm, with a focus on large-scale investments in technology and technology-enabled industries. It partners with world-class management teams to build and grow great companies.
For further information, visit the nearest office of Affinity Partners
About Affinity Partners:
Affinity Partners is a private equity firm founded by Jared Kushner. The firm focuses on making investments in American and Middle Eastern companies, leveraging its connections and strategic insights across both regions.
For further information, visit activisionblizzard.com
About Activision Blizzard:
Activision Blizzard, a subsidiary of Microsoft, is a leading global developer and publisher of interactive entertainment. Its portfolio includes some of the world’s most successful franchises, such as Call of Duty®, World of Warcraft®, and Candy Crush Saga™.
For further information, visit nintendo.com
About Nintendo:
Nintendo Co., Ltd., headquartered in Kyoto, Japan, has created franchises that have become household names worldwide, including Mario™, Donkey Kong™, The Legend of Zelda™, and Pokémon™. It develops, manufactures, and markets hardware and software for its gaming systems.
For further information, visit take2games.com
About Take-Two Interactive:
Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. The company develops and publishes products principally through its wholly-owned labels Rockstar Games, 2K, and Private Division.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a cornerstone of legal practice, built upon a dual commitment to principled counsel and groundbreaking innovation. The firm leverages its extensive experience across numerous sectors to not only achieve outstanding results for its clients but also to advance the legal field itself. A core tenet of its mission is the belief that a legally informed public is essential for societal progress, driving its initiatives to make legal knowledge comprehensible and widely available to all citizens.