EA's $55 Billion Saudi-Led Buyout Raises Fears of Safer Sequels
Aleksandr Manin
Arrowhead CEO Shams Jorjani was among the first studio leaders to react to Electronic Arts' $55 billion sale, warning that new ownership could favor safer bets, more sequels, and bigger franchises. The deal, led by Saudi Arabia's Public Investment Fund, has already sparked concern about what it could mean for EA's creative direction.
The acquisition group also includes Silver Lake Partners and Affinity Partners. According to the reported terms, Saudi Arabia's Public Investment Fund will hold 93.4% of EA, while the remaining 6.6% is split between Silver Lake Partners and Affinity Partners.
Jorjani called the deal consolidation and questioned whether the new ownership will lean toward safer bets, more sequels, and more mega-franchises.
The industry needs business diversity as much as it needs creative diversity — the more studios and publishers operating at different scales, taking different bets, the healthier games get.
Jorjani pointed to EA's catalog as an example of that range, naming Battlefield, The Sims, Mass Effect, Split Fiction, Unravel, Command & Conquer: Generals, and SimCity 2000. He said it would be a real waste if EA became a sequel-and-mega-franchise machine.
EA is expected to remain headquartered in California after the sale closes, and Andrew Wilson is expected to stay on as CEO. The takeover has now cleared regulatory approval, but questions remain about how much room the publisher will have for riskier projects under its new owners.
Earlier, EA Sale Sparks Panic at BioWare highlighted mounting fears of further layoffs following EA's takeover.
Will EA keep enough room for smaller bets, or will the new owners push it toward safer franchises?
