"But that shock pales into comparison to the reaction to the latest big move in the industry: EA (Electronic Arts), the publisher best known for its juggernaut sports games Madden and EA Sports FC (previously called Fifa), is being taken private in the biggest leveraged buyout in history. It's a deal worth $55bn, by a trio of investors who, on paper, look like a collection of end-of-level bosses."
"Enter player one: Saudi Arabia's sovereign wealth fund. The Saudi royal family has been investing its wealth in video games for some years now, and owns its own Savvy Games Group, led by crown prince Mohammed bin Salman, perhaps best known for mass-arresting his own citizens and ordering the assassination of journalist Jamal Khashoggi. Player two: Affinity Partners, an investment company led by Jared Kushner, son-in-law of the current US president."
Microsoft paid just over $68bn for Activision-Blizzard in 2022, marking the biggest games-industry deal at the time. The new headline deal is a $55bn leveraged buyout taking Electronic Arts private. The buyers are a trio: Saudi Arabia's sovereign wealth fund, Affinity Partners led by Jared Kushner, and private equity firm Silver Lake. The Saudi royal family operates Savvy Games Group and has bought stakes in many gaming companies while investing in esports events like the eSports World Cup. Saudi investments aim to bolster international image and distract from well-documented human rights abuses.
#ea-leveraged-buyout #saudi-investments-in-games #affinity-partners-jared-kushner #private-equity-silver-lake
Read at www.theguardian.com
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