Scrutiny is now focused on the huge acquisition that took EA private. Reports indicate that one of the main financial backers, Saudi Arabia’s Public Investment Fund (PIF), may be facing unexpected cash concerns. While the dust has barely settled on this landmark transaction, the financial situation of a key investor raises immediate questions about the long-term stability and future investment plans of the world’s largest sovereign wealth fund. This news has created uncertainty in the gaming industry, especially for those expecting more high-profile mergers.
The deal was completed in late September 2025, allowing Electronic Arts to exit the public market in an estimated $55 billion buyout. This monumental valuation made the transaction one of the largest in the industry’s history. The PIF, which aims to diversify Saudi Arabia’s assets and make significant investments in entertainment and technology, played a crucial role as a co-buyer. They contributed a large portion of the funds needed to complete the privatization. At the time, this investment showed the PIF’s commitment to securing major stakes in global gaming intellectual property.
However, just weeks after the substantial capital transfer for EA, reports began to emerge that the PIF might be running low on funds. While sovereign wealth funds typically operate on large scales, an acquisition of this size puts pressure on liquid assets. For a fund that has aggressively expanded its portfolio across various global sectors in recent years, this sudden financial strain is unusual. It suggests that the cost of acquiring EA was more demanding on their reserves than initially expected. Industry analysts are now closely observing the specifics and seriousness of these funding issues.
The immediate effects of this financial tightening will likely influence the fund’s future strategy. If the reports are accurate, the PIF might pull back on several planned large-scale investments in the gaming and broader technology sectors. This necessary reduction indicates a shift toward prioritizing current assets over future growth, which could delay the fund’s aggressive push into content creation and global entertainment platforms. The financial health of key partners remains critical in such large deals, and the PIF’s current situation adds unexpected risk to the recently privatized EA.
