Saudi Arabia, EA and Digital Sport's Soft Power

The Public Investment Fund’s (PIF) $55 billion acquisition of Electronic Arts (EA) represents a significant shift in Saudi Arabia’s soft power strategy, moving from direct investment in traditional sports to the digital recreation of those sports. With the deal nearing completion following regulatory clearance from the European Commission, the PIF will acquire a 93.4% stake in the publisher. This leveraged buyout, supported by $20 billion in debt financing from J.P. Morgan, is expected to necessitate business restructuring, including potential layoffs and a focus on core revenue drivers like sports titles, service-based shooters, and The Sims.

The acquisition aligns with Saudi Arabia’s national gaming and esports strategy, which aims to generate £10 billion in economic value and support 39,000 jobs. By securing a publisher with established esports credentials and a massive global footprint, the state gains a powerful tool to influence information ecosystems surrounding professional sports. Unlike traditional sporting investments, which have faced scrutiny and recent funding cutbacks, video games offer a more subtle, deeply entrenched method of engagement with global fandoms, leagues, and athletes.

This strategic pivot reflects a broader transition in how the state projects influence. While direct backing for entities like LIV Golf and various football clubs has waned due to financial constraints and institutional resistance, the ownership of EA provides a direct, persistent connection to the world’s most popular sports. By controlling the digital platforms where these sports are played and discussed, the PIF secures a long-term soft power asset capable of reaching billions of users, effectively bypassing the barriers encountered in traditional sporting institutions.