Trump's Son-in-Law Emerges as Key Backer in $55 Billion Saudi-Led EA Buyout

Renowned game developer Electronic Arts (EA) announced in August the completion of its privatization, officially acquired for $55 billion by a consortium led by Saudi Arabia’s Public Investment Fund (PIF). With the deal closed, the company, which had been listed on Nasdaq for nearly 37 years, has ceased trading and delisted. Shareholders will receive $210 per share in cash.

This transaction not only sent shockwaves through the gaming industry but also set a new record as the largest leveraged buyout (LBO) in global capital market history, surpassing the 2007 Texas power acquisition. Of the $55 billion total, approximately $20 billion was financed through a credit commitment led by JPMorgan Chase.

Post-acquisition equity structure shows that PIF, led by Crown Prince and Prime Minister Mohammed bin Salman, holds 93.4%, becoming the majority shareholder. The remaining shares were acquired by Silicon Valley private equity firm Silver Lake Capital and others. Jared Kushner’s Affinity Partners, son-in-law of former U.S. President Donald Trump, holds a minor 1.1% stake.

From 'White House Insider' to 'Capital Broker'

Despite the small financial stake, Kushner’s role remains highly scrutinized. He first visited Riyadh with President Trump in 2017 and developed a close personal relationship with Crown Prince Salman. Although PIF’s investment committee initially opposed funding Kushner’s newly established private fund, the Crown Prince personally approved a $2 billion investment.

This capital became the cornerstone enabling Affinity Partners to participate in the EA acquisition. While the 1.1% equity appears negligible financially, sources indicate Kushner possesses unique cross-sector communication abilities—bridging Washington, Riyadh, Silicon Valley, and Manhattan—and is the only figure capable of effectively linking Middle Eastern sovereign wealth, Wall Street leverage, and American tech assets.

Financial Strain from the Largest-Ever Leveraged Buyout

The deal closed at $210 per share in cash, with a $20 billion financing commitment led by JPMorgan Chase. This 'borrow-to-buy' leveraged model adds approximately $18 billion in new debt to EA’s balance sheet, resulting in an estimated annual interest payment of $1.8 billion.

Michael Futter, founder of F-Squared, told CNBC that the heavy debt burden will force EA’s management toward more conservative strategies, likely focusing only on high-profit IP such as The Sims, Battlefield, and sports franchises, rather than investing in risky new IP development.

Bloomberg journalist Jason Schreier further predicts EA may face large-scale layoffs and adopt more aggressive monetization tactics to manage debt obligations.

Strategic Geopolitical Play: Politics, Sports, and Soft Power

For Crown Prince Salman, Kushner’s involvement transcends mere investment—it aligns with Saudi Arabia’s Vision 2030 strategy. Analyst George Osborn argues that EA’s value lies not in 'pure economic returns' but in its status as a 'soft power asset' deeply embedded in global sports culture. Through EA’s connections with over 20,000 athletes, 750 clubs, and 35 professional leagues, Saudi Arabia gains influence over the perceptions of billions of players worldwide.

However, this politically driven acquisition by sovereign wealth has raised concerns about content censorship. Advocacy group Players Alliance HQ warns that due to Saudi Arabia’s stance on human rights and LGBTQI+ communities, games like The Sims—known for promoting diversity and inclusion—may face external pressure leading to self-censorship or content alterations in the future.