Majority Control Of EA Could Shift To Saudi Arabia's Public Investment Fund - Report
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Majority Control Of EA Could Shift To Saudi Arabia's Public Investment Fund - Report
"According to The Wall Street Journal, EA's potential buyers have disclosed that PIF would be given 93.4% of EA in a document filed with Brazil's antitrust regulator. Silver Lake would only own 5.5% of the company, while Affinity would have a much smaller share: 1.1%. PIF is also a major investor in both Silver Lake and Affinity, which would leave it with more power over EA."
"WSJ notes that sovereign-wealth funds like the PIF normally make much smaller investments in buyouts like this one, while private-equity firms would take the lead as the primary owners and investors. Saudi Arabia has already invested in several video game companies, including Nintendo and Take-Two Interactive. In this year alone, Saudi Arabian-owned mobile developer Scopely purchased Niantic's video game division, the company behind Pokemon Go and other mobile titles."
The $55 billion privatization deal for Electronic Arts would allocate 93.4% ownership to Saudi Arabia's Public Investment Fund, with Silver Lake at 5.5% and Affinity Partners at 1.1%. PIF also holds stakes in Silver Lake and Affinity, increasing its effective control. Sovereign-wealth funds typically make smaller buyout investments while private-equity firms lead takeovers, but PIF has recently invested heavily in multiple gaming companies. Senators have expressed concerns about foreign influence. EA stated it would retain creative control after the sale. Reports claim PIF may be overextended, though the fund says it holds $60 billion in cash and similar instruments.
Read at GameSpot
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