US EditionSaudi Arabia to own almost all of EA under buyout plan, report says
Saudi Arabia's Public Investment Fund will control 93.4% of Electronic Arts in a $55 billion deal, marking the largest leveraged buyout in history, pending approvals.
- On Tuesday, a Wall Street Journal report said Saudi Arabia's Public Investment Fund would own 93.4% of Redwood City-based Electronic Arts in a $55 billion leveraged buyout announced in September.
- Reports say Saudi Arabia's finances have grown shaky in recent years, and the $55 billion buyout relies on $20 billion in loans, amid industry slowdown.
- The proposal assigns 5.5% to Silver Lake Partners and 1.1% to Affinity Partners, run by Jared Kushner, both receiving funds from Saudi Arabia as reports say Kushner helped facilitate ties.
- EA's scheduled vote later this month sets the stage for the company to go private if shareholders approve, with the transaction expected to close next year pending regulatory and shareholder approval.
- Filings indicate the deal would uniquely give a sovereign fund control, and analysts warn servicing the leveraged buyout debt could force cuts, sell-offs, or layoffs affecting EA studios and employees.
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The Columbian
Saudi Arabia to own almost all of EA under buyout plan, report says
Saudi Arabia’s Public Investment Fund could reportedly own nearly all of Electronic Arts Inc. under the buyout plan for the video game giant. Read more...
EA’s $55B Deal Would Leave Saudi Arabia in Near-Total Control, Filing Shows
Electronic Arts’ pending $55 billion buyout is already one of the most talked-about deals in gaming history. And now, a new report suggests just how concentrated ownership can become if the acquisition goes through. According to a Wall Street Journal summary of documents filed with a Brazilian antitrust regulator, Saudi Arabia’s Public Investment Fund (PIF) is positioned to hold 93.4% of EA once the deal closes, with Silver Lake Partners taking …
A Saudi Public Investment Fund will hold around 93.4% of Electronic Arts' shares after a $55 billion deal — almost total ownership
A new filing shows the Public Investment Fund will hold 93.4% of EA after backing a $55 billion deal. This gives it near-total control, raising questions about EA’s direction, long-term strategy, and what this means for fans.
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