EA shareholders greenlight Saudi Arabian acquisition, with only the US Government having potential to hinder the agreement
EA’s shareholders have given the green light to the proposed $55 billion acquisition by Saudi Arabia and private equity firms, positioning it to become one of the largest corporate takeovers in history, pending approval from the U.S. government.
Originally announced in September, this acquisition would result in the Saudi Arabian Public Investment Fund owning 93.4 percent of EA. This wealth fund, managed by the government, aims to enhance the nation’s infrastructure and attract global businesses.
Opponents of this acquisition highlight concerns about the fund’s role in improving Saudi Arabia’s international image, especially given the country’s controversial human rights record.
The deal is expected to proceed with the assistance of Silver Lake and Affinity Partners, the latter of which was founded by Jared Kushner, who is notably linked to former President Donald Trump. Affinity Partners had recently attempted to acquire Warner Bros Discovery but reportedly withdrew due to criticism regarding Kushner’s involvement.
Should the acquisition be finalized, it may leave the Saudi investment fund with limited cash resources, potentially signaling a shift in their recent aggressive investment strategy.
Before shareholder approval, it was widely anticipated that the buyout would face minimal opposition. Nevertheless, there has been noticeable resistance from video game unions and human rights advocates regarding the growing influence of Saudi Arabia in the U.S. industry.