EA Shareholders Approve $55bn Sale To Saudi Arabia

"The sale, that would see the 43-year-old company become majority owned by the Saudi Arabia Public Investment Fund (PIF), could go ahead by the beginning of 2027 pending government approval, now that public investors have voted in favor of the deal. And government approval might not be too tricky, given Trump's son-in-law Jared Kushner would also benefit from 1.1 percent of the deal."

"The full deal will see EA become a private company, 37 years after it originally went public, with ownership unevenly split between three groups. The vast majority-an enormous 93.4 percent-will be owned by the murderous regime of Crown Prince Mohammed bin Salman via Saudi Arabia's sovereign wealth fund. That will leave 5.5 percent going to Californian private equity firm Silver Lake, and 1.1 percent for Affinity Partners, Jared Kushner's investment firm that is, well, primarily funded by Saudi Arabia."

"Then, of course, there's the very significant matter of the company being almost entirely owned by a state that kills people for being gay or trans, murders journalists, and denies women many basic rights. EA employees obviously have good reason to be fearful, no matter how much the PIF may exist to whitewash the country's actions, and there's no way of knowing how the ownership might affect everything from basic company policy to what's included in games."

Shareholders approved a buyout that would make EA majority owned by the Saudi Arabia Public Investment Fund, with completion possible by early 2027 pending government approval. Ownership would be 93.4% PIF, 5.5% Silver Lake, and 1.1% Affinity Partners. EA would become a private company nearly four decades after going public. Shareholders would receive $210 per share. The transaction would burden EA with about $20 billion in debt to fund the purchase, likely damaging its credit rating and raising doubts about financial sustainability. Extensive human rights concerns are cited given the PIF's association with Saudi leadership. Employees face fear about policy, content, and future stability.

Read at Kotaku