"The three companies in question are Saudi Arabia's Public Investment Fund, alongside US-based investment firms Silver Lake and Affinity Partners. Should the deal go through, it will be the largest leveraged deal in history. But while we knew who the three companies were, we didn't know what sort of stakes each one had in the buyout. Well, based on a new report by the Wall Street Journal (paywalled), now we do."
"According to the Wall Street Journal, a filing in Brazil's antitrust regulator shows that the Saudi Arabian Public Investment Fund (PIF) will apparently own 93.4% of EA. Silver Lake will get 5.5%, and Affinity just 1.1%. In total, the three companies are laying down $36.4 billion in equity, and then borrowing another $20 billion, which is going to be classified as debt held by EA, raising its debt from its current $2.2 billion to over $22.2 billion. So I guess those microtransaction prices are going to go up, then?"
"It's worth noting that the PIF is actually an investor in both Affinity and SIlver Lake, so there's a lot of financial risk here. And that's somewhat surprising, because despite the incredibly deep pockets of the PIF, it's actually a little strained at the moment thanks to numerous big projects. Of course, the news of the buyout has not exactly gone down well with people."
The Saudi Public Investment Fund (PIF) will own 93.4% of EA, with Silver Lake holding 5.5% and Affinity Partners 1.1%. The consortium is contributing $36.4 billion in equity and plans to borrow $20 billion that will be recorded as company debt, increasing EA's liabilities from $2.2 billion to over $22.2 billion. The deal is expected to finalize in 2027 and would be the largest leveraged buyout ever. The PIF already invests in both partner firms, concentrating financial exposure. The transaction has prompted public concern about elevated debt levels and potential Saudi influence over EA.
Read at WGB
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