It was already clear that three major entities were behind the buyout, but new information shows that one of them may acquire nearly the entire company.
When Electronic Arts announced in October that it would go private in a $55 billion leveraged buyout, it named three buyers: Saudi Arabia’s Public Investment Fund (PIF), Jared Kushner’s Affinity Partners, and Silver Lake. At the time, the distribution of ownership was not disclosed, though it was evident that the financial contribution would not be equal.
According to the Wall Street Journal, PIF will end up owning 93.4% of Electronic Arts. This leaves Silver Lake with 5.5% and Affinity Partners with just 1.1%. Since PIF is also a significant investor in both firms, the acquisition – pending regulatory and shareholder approval – effectively places EA entirely under PIF’s control.
The WSJ also reported several details from documents submitted to Brazil’s antitrust regulator. Of the $55 billion total price, $36.4 billion comes from equity, with the remaining $20 billion financed through debt. Subtracting PIF’s existing $5.2 billion stake, the fund appears to have invested roughly $29 billion into acquiring EA. PIF’s aggressive push in gaming is well-known, as it holds substantial stakes in Take-Two, Capcom, Nexon, Nintendo, and others.
However, with such overwhelming ownership, it is increasingly doubtful that EA’s values and commitment to players will remain unchanged, despite CEO Andrew Wilson’s promises. The PIF itself is struggling financially due to the construction of a futuristic megacity project in the desert, suggesting the gaming sector is just another major expenditure in a much larger portfolio.
