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- The planned EA deal with the Saudi Public Investment Fund (PIF) would see it own nearly all of the publisher.
- 93.4% of the company will be under the fund’s control, as it will go private following the buyout.
- The $55 billion deal is expected to become one of the largest gaming acquisitions if finalized.
Gaming buyouts often mark a new beginning for many studios under new leaders, often bringing both opportunities and challenges. One of the biggest independent and public firms, EA, is now also approaching this juncture with Saudi Arabia’s Public Investment Fund (PIF).
A new report now reveals that this $55 billion merger to take EA private will see PIF own a huge 93.4% of the company. The exact percent split was not known until now, which will see nearly all of the company be owned by PIF alongside Silver Lake and Affinity Partners.
Why it matters: The buyout would mark the biggest turning point in EA’s history if it goes through. Many gamers worry that the merger would bring major negative changes to the publisher’s multiple franchises.
A new report by the Wall Street Journal confirms that the Saudi Fund would own nearly all of EA after the merger. The tidbit was found in a recent filing with a Brazilian antitrust regulator.
The private firm Silver Lake Partners would own 5.5% of the publisher, while Jared Kushner’s Affinity Partners would assume control of 1.1%. The main Saudi investor, PIF, would have the rest of the ownership.
The deal, which is expected to close next year, would be hailed as the biggest leveraged buyout in gaming history. It is currently pending regulatory and shareholder approval; EA is planning a meeting with shareholders to vote on the proposal later this month.
The EA buyout comes at a tumultuous time for EA, as it has suffered multiple layoffs over the years. Yearly revenues have also been stagnant for a while, and multiple of its franchises have been struggling in modern times, such as Dragon Age and Need for Speed.
Saudi Arabia’s PIF is already known to have invested in several international gaming companies, such as Nintendo and Niantic. The new move to acquire EA will see the country broaden its global presence in the growing gaming industry.
Do you think the EA deal will be approved and the company will eventually go private under the Saudi investment fund? Are you content with this potential buyout? Let us know your thoughts in the comments below, or join the discussion on the Tech4Gamers forum.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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