Electronic Arts shareholders approve $55B sale to Saudi-backed fund, deal awaits regulators

In a move that promises to change the landscape of the video game industry, Electronic Arts shareholders have officially voted in favor of a massive $55 billion takeover. The deal, which was approved in a vote this past Monday, sets the stage for the 43-year-old company to transition from a public entity to a private company. If the acquisition clears regulatory hurdles, it is expected to be finalized by the beginning of 2027.

Under the terms of this agreement, stockholders are poised to receive a significant payout of $210 per share. The new ownership structure will see the Saudi Arabia Public Investment Fund (PIF) control the vast majority of the company, holding a staggering 93.4 percent stake. The remaining ownership will be split between Californian private equity firm Silver Lake, with 5.5 percent, and Affinity Partners—Jared Kushner’s investment firm—which will hold 1.1 percent. This marks a pivotal shift for EA, taking it private nearly four decades after its initial public offering.

Regulatory Hurdles and Political Implications

While the shareholder vote is a major step forward, the deal is not yet done. It now faces a period of scrutiny from government regulators worldwide, similar to the process Microsoft faced during its acquisition of Activision Blizzard King. However, the political climate in the United States may facilitate a smoother path than expected, with some industry analysts believing the process could be expedited compared to previous FTC battles.

Despite this, the acquisition has not gone unnoticed by U.S. lawmakers. Senators have already expressed concerns regarding national security and foreign influence over a major American technology and entertainment company. In a letter to the Secretary of the Treasury, demands have been made for “searching scrutiny” to ensure that any potential risks associated with foreign privatization are properly mitigated.

Financial Pressure and Player Impact

For gamers and employees, the implications of this deal are complex. While the acquisition provides a financial windfall for current shareholders, it reportedly leaves EA saddled with approximately $20 billion in debt. This financial burden has raised concerns about the company’s credit rating and long-term sustainability. To manage such costs, there is a fear that the company may need to restructure, which could lead to talent exits or changes in development philosophy.

The most pressing questions for the player base revolve around how this new ownership might influence the content of beloved franchises. With the PIF’s ties to the Saudi state, employees and players have voiced valid concerns regarding human rights issues and how those values might impact company culture and game narratives. The pressure to service the acquisition debt could influence how future games are monetized or supported in the future.

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