How the Electronic Arts takeover plays into Saudi Arabia's bro-vestment strategy
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Saudi Arabia's $925 billion Public Investment Fund (PIF) is backing the largest buyout ever, in a deal that speaks to the kingdom's renewed ambitions to become a cultural powerhouse.
Why it matters: The deal, for video game maker Electronic Arts, is the latest U.S. entry point for Riyadh, as the oil-rich nation aims to diversify its economy — in large part by investing in industries with outsized male audiences, from console gaming to combat sports.
Zoom out: Just as the PIF is directing massive capital into global entertainment, Saudi Arabia is mounting a high-profile cultural push with its first Riyadh Comedy Festival, running Sept. 26–Oct. 9.
- The festival has drawn a star-studded international lineup (Dave Chappelle, Kevin Hart, Bill Burr, Aziz Ansari, Pete Davidson, Jimmy Carr, Louis C.K., and more) under the banner of creating the "world's largest comedy festival."
- But it's also sparked fierce backlash: critics argue it's a form of "comedy-washing" — deploying high-paid entertainers to gloss over the Saudi regime's record on repression, censorship and human rights abuses.
Zoom in: Many of the kingdom's investments have mirrored the apparent interests of Saudi Crown Prince Mohammed bin Salman and his top aides in gaming, anime, tech and sports, including:
- Gaming & esports: PIF-owned Savvy Games Group acquired tournament organizers ESL and FACEIT for about $1.5 billion and mobile developer Scopely for $4.9 billion.
- Combat sports: The Saudis have shelled out hundreds of millions of dollars to put on the biggest events in boxing, including an historic superfight on Netflix earlier this month. The UFC and WWE are turning Riyadh into a top destination for their events, while parent company TKO just inked a media rights deal with Paramount for a new Saudi-backed boxing promotion that could revolutionize the sport.
- Soccer: Saudi Arabia will host the World Cup in 2034. PIF led the $415M takeover of Newcastle United in 2021, securing an 80% stake and a place in the English Premier League. The sport's biggest stars, including Cristiano Ronaldo, have accepted massive contracts to play in Saudi Arabia and become ambassadors for the Saudi tourism industry.
- Golf: PIF bankrolled LIV Golf and struck a 2023 framework agreement with the PGA Tour to merge commercial operations under a new for-profit entity.
- Motorsports: The fund has built its stake in Aston Martin to more than 20% and reportedly explored a $20B bid for Formula 1.
- Entertainment and media: Billions have gone into U.S. film and events through partnerships like AMC Theatres and big-ticket sponsorships of WWE shows staged in Saudi Arabia.
- Tech: PIF remains the largest backer of EV startup Lucid Motors, holding over 60% of the stock, and is looking to expand its reach into the AI race.
Yes, but: "At the end of the day, money is the main driver" of the investment strategy, Michael Maudell, president of the Sovereign Wealth Fund Institute, tells Axios.
- It's about "trying to get away from fossil fuels and diversify."
- The Saudis also want to have their hand in the AI race and see the U.S. as the best place to capitalize on that interest, he says.
The big picture: Saudi Arabia enjoys warm relations with the Trump administration.
- President Trump's first foreign trip in his second term was to Saudi Arabia, where the administration said it secured $600 billion in investment commitments.
- And Jared Kushner, the president's son-in-law, is part of the consortium acquiring Electronic Arts.
What's next: After a big deal like the EA takeover, Maudell notes that historically the PIF pulls back a bit before pouring more funds into the U.S. Still, he sees that investment growing as the kingdom looks to get in on the AI race.
- "I think the Middle East has become sort of like the Switzerland…It's this place where, you know, everyone can, can come to the table and conduct business…China, Russia, the US, Europe…everyone's doing business in that part of the world," Maudell says.
That's a far cry from the protests and backlash U.S. officials and companies faced after the 2018 murder of journalist Jamal Khashoggi.
- Back then, firms distanced themselves from Riyadh, but many have since returned, lured by PIF's deep pockets.
- "Businesses are loyal to one thing: shareholders… and money," Maudell says.
For the record: PIF did not respond to requests for comment from Axios.
Editor's note: This story has been corrected with the name of Savvy Games Group.
