EA shareholders greenlight $55bn takeover by Saudi Arabia’s Public Investment Fund
Saudi Arabia’s Public Investment Fund will own 93.4% of the Battlefield publisher, if it clears government scrutiny
Electronic Arts’ proposed sale to Saudi Arabia’s Public Investment Fund has been approved by the company’s shareholders.
The $55 billion takeover deal was approved in a shareholder vote on Monday. The takeover will now require approval from government regulators to be finalised.
Should the acquisition be approved, Saudi Arabia’s Public Investment Fund will own 93.4% of the EA Sports, Battlefield, and Sims publisher. Silver Lake Partners – an investment fund run by a US private equity firm– will own 5.5% of shares.
Assuming it goes through, the EA deal will be the largest ever leveraged buyout and a significant financial bet for Saudi Arabia at a time when its finances are reportedly starting to become strained.
Some U.S. senators have expressed concern over the proposed deal, however, and warned of potential security risks and foreign influence over the acquisition.
In a letter to Secretary of the Treasury Scott Bessent, two Senators urged him to “apply searching scrutiny to this unprecedented, proposed foreign privatization of a major American technology and entertainment company” and requested information on how the Committee plans to ensure that national security risks arising from the deal may be mitigated.
The pair also alleged that the PIF’s strategic investments in sport, video games, and other cultural institutions are more about “leveraging long-term shifts in public opinion” of the country than they are about actually making money.
They also questioned the PIF’s decision to partner with Affinity Partners, an American investment firm that was formed in 2021 by Donald Trump’s son-in-law, Jared Kushner, alleging that the firm is only involved so that it will be more easily approved by the US government.
