EA shareholders approved proposed acquisition for $55 billion video game giant Saudi Arabia and private equity firms, leaving only the US government the path to the largest corporate buyout of all time.
This acquisition, which was first announced back in September, will leave 93.4 percent of EA shares owned by the Public Investment Fund of the Kingdom of Saudi Arabia.A sovereign wealth fund used to build infrastructure, attract business to Saudi Arabia and more.
Critics of the fund and the proposed deal say it is also being used to tarnish the country's reputation, as Saudi Arabia has been heavily criticized for human rights abuses over the years.
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The acquisition, subject to approval, will be completed with the assistance of Silver Lake and Affinity Partners, the latter founded and owned by Jared Kushner, the son-in-law of President Donald Trump. The same firm was also involved in an attempted hostile takeover of Warner Bros Discovery. earlier this month, although he reportedly backed down amid criticism of Kushner's involvement.
It is worth noting that the Saudi Arabian Public Investment Fund will be a little short on funds after this acquisition if it goes throughperhaps marking the end of the spending boom he has been on for the past few years.
Pending this shareholder approval, it is widely believed that the ransom will not be much contested. However, Saudi Arabia's growing influence in US industry has not come without resistance. Video game unions openly opposeHow there are human rights groups.
