The largest leveraged buyout in history saddles Electronic Arts with $18 billion in debt against $1.5 billion in annual earnings, and Bloomberg reports EA committed to $700 million in cost cuts.
Electronic Arts' $55 billion buyout closed August 5, transferring control of the publisher behind FIFA, Battlefield, and The Sims to a consortium led by Saudi Arabia's Public Investment Fund, alongside Silver Lake and Affinity Partners. PIF holds roughly 93.4% of the group, and the deal is being described as the largest leveraged buyout in history.
A heavily leveraged company
The transaction loaded EA with about $18 billion in debt, against annual earnings (EBITDA) of roughly $1.5 billion — meaning debt service alone could consume a large share of the company's operating profit. Reporting on the deal put annual interest payments at around $1.8 billion.
What Bloomberg's reporting says about cost cuts
Citing people familiar with the matter, Bloomberg reported — relayed by journalist Jason Schreier — that EA has committed to debt investors to cut $700 million in annual costs, including $170 million specifically labeled organizational efficiencies. EA has not publicly confirmed a layoff plan or specific numbers, and the reporting reflects sourced accounts of the debt agreement rather than an announcement from the company.
- EA cut 300–400 jobs in 2025, including about 100 at Respawn Entertainment
- An undisclosed number of jobs were cut in March 2026 across Battlefield 6 studios Criterion, Dice, Motive, and Ripple Effect
- The newly reported cost-cutting figure, if it plays out as described, would be larger in scale than either of those prior rounds
Why players are watching closely
Arrowhead Game Studios CEO Shams Jorjani, whose company is not owned by EA, said he worries private ownership focused on debt repayment could push EA toward safe bet, more sequels, more mega-franchises rather than funding creative risk-taking. Critics have also raised concerns about Saudi Arabia's human rights record and about Jared Kushner's Affinity Partners holding a stake in the deal while Kushner remains connected to the current U.S. administration.
Confirmed vs. reported
EA has confirmed the buyout closed. The $700 million cost-cut figure and its link to layoffs comes from Bloomberg's sourced reporting, not an EA statement — worth keeping in mind until the company addresses it directly.
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