An unprecedented deal is being prepared in the world of the video game industry: the computer game manufacturer Electronic Arts (EA) is planned to be sold for $55 billion. The buyers are the Sovereign Wealth Fund of Saudi Arabia (PIF), the investment company Affinity Partners, controlled by Jared Kushner, the son-in-law of US President Donald Trump, as well as the investment company Silver Lake Partners. This was reported by the New York Times and the Associated Press.
According to the terms of the deal, EA shareholders will receive $210 per share, which is 25% higher than the market price at the time of the announcement of the buyout. The total amount, taking into account the company's debt obligations, will reach $55 billion, which will make this transaction the largest buyout of a public company in history.
The financial parameters of the deal exceed the previous record set in 2007, when the energy company TXU was acquired for $45 billion. Moreover, this acquisition will be the largest transaction of the year, carried out entirely for cash. Part of the funds for financing the deal will come from a $20 billion loan provided by the American bank JPMorgan Chase.
Jared Kushner played an important role in the negotiations. According to sources, he, together with Egon Durban, co-chairman of Silver Lake, began considering the possibility of a takeover earlier this year. It was their initiative that became the driving force behind the implementation of a deal of this scale.
However, the final completion of the process requires the approval of the Committee on Foreign Investment in the United States (CFIUS). Only after that can the deal come into force. The participation of the Saudi fund makes this stage especially important, since the American authorities closely monitor such investments in technology and entertainment companies.
Despite the change in ownership, EA CEO Andrew Wilson, who has led the company since 2013, will remain in his position. It has also been confirmed that the headquarters will remain in Redwood City, California. This means that no strategic changes in the company's management are currently planned.
e-finance.com.ua
