EA shareholders have approved the proposed $55bn acquisition of the video game giant by Saudi Arabia and private equity firms, leaving only the US government in the way of what would be the largest corporate buyout of all time.
This acquisition, first announced back in September, would leave EA 93.4 percent owned by the Kingdom of Saudi Arabia’s Public Investment Fund, a government wealth fund used to build infrastructure, attract businesses to Saudi Arabia, and more.
Critics of the fund and of this proposed deal argue that it’s also used for washing the country’s reputation, as Saudi Arabia has been heavily criticised over the years for human rights abuses.
This acquisition would be made if approved with the assistance of Silver Lake and Affinity Partners, the latter founded and owned by Jarred Kushner – son-in-law to President Donald Trump. This same firm was also involved in the hostile takeover attempt of Warner Bros Discovery earlier this month, though it reportedly pulled back amidst criticism of Kushner’s involvement.
It is worth noting that the Saudi Arabian Public Investment Fund will be a little low on cash after this acquisition if it goes through, perhaps marking the end of the spending spree its been doing over the past few years.
Prior to this approval by shareholders, it’s widely believed that the buyout won’t be heavily contested. However, the increasing amount of sway Saudi Arabia has in US industry has not gone entirely without pushback. Video game unions have been vocal in their opposition, as have human rights groups.