A breakdown of the ownership between the parties involved in the EA buyout wasn’t provided initially, but it has now come to light that one investor is committing significantly more cash than the others.
According to the Wall Street Journal, the Public Investment Fund (PIF) will own a staggering 93.4% of EA—an amount so large that it renders the other stakeholders nearly insignificant by comparison. Silver Lake and Affinity Partners are set to own 5.5% and 1.1%, respectively, and notably, PIF is also a “significant investor” in both of these firms.
In other words, if the buyout passes regulatory and shareholder approvals, the PIF will effectively own EA.
The report also reveals some finer details about the transaction, made public following a filing with Brazil’s antitrust regulator. Out of the $55 billion total cost, $36.4 billion will be funded through equity, while the remaining $20 billion will come from debt.
Taking into account the existing $5.2 billion stake PIF already holds in EA, it appears that PIF has, according to the WSJ, put up about $29 billion for the buyout.
PIF’s dominant majority stake may not come as a surprise to everyone; the fund is famously aggressive when it comes to acquiring stakes in the gaming industry. Its portfolio already includes investments in Take-Two, Capcom, Nexon, and Nintendo, among others.
However, with such a large stake now secured, it seems increasingly unlikely that EA’s “values and our [EA’s] commitment to players and fans around the world remain unchanged,” as EA CEO Andrew Wilson stated in October.
For a more in-depth look at the buyout’s ramifications, it’s worth reading Lincoln Carpenter’s detailed feature on the subject.
https://www.pcgamer.com/gaming-industry/it-turns-out-saudi-arabia-will-own-93-4-percent-of-ea-if-the-buyout-goes-through-which-is-effectively-all-of-it/
