Saudi Acquisition of Electronic Arts Approved by Shareholders

Recommended products

This page contains affiliate links. As an Amazon Associate, we earn a commission from purchases made through these links.

Approval of $55 Billion Saudi Acquisition of Electronic Arts Boosted by Strategic Premium and Regulatory Outlook

Electronic Arts (EA) shareholders have approved the company’s acquisition by the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund led by Mohammed bin Salman. The approved deal involves a $55 billion takeover, with shareholders receiving $210 per share—a 25% premium over pre-announcement valuations. Shareholders cast over 201 million votes in favor of the acquisition, driven by the lucrative premium and Saudi Arabia’s strategic expansion into gaming, including investments in companies like Capcom and Nintendo. The involvement of Jared Kushner’s Affinity Partners also suggested a positive outlook for regulatory approval. This acquisition highlights the increasing interest of sovereign wealth funds in gaming content libraries and includes a $20 billion loan. The deal, announced earlier this year, still requires approval from government regulators to finalize the transaction. If approved, the PIF would control 93.4% of EA, with the remaining ownership held by Silver Lake, a Californian private equity firm, and Affinity Partners.

Regulatory Scrutiny Looms Over EA’s Saudi Acquisition Amidst Concerns of Influence and Creative Control

While EA would continue to operate as an American company, the majority ownership by Saudi Arabia has raised concerns among players and American political officials. According to journalist Stephen Totilo, this shareholder validation is a key but not decisive step, as the deal faces intense scrutiny from U.S. regulators. The Committee on Foreign Investment in the United States (CFIUS) is under pressure to thoroughly assess national interests, and the timeline for approval remains uncertain. Both U.S. and EU regulators have expressed concerns regarding Saudi influence over American creative content. EA CEO Andrew Wilson has stated that he will remain with the company after the acquisition and has assured that the publisher will retain creative control. However, the PIF’s role in the company’s long-term strategy remains unclear, raising questions about the studios’ independence and potential indirect influences—particularly as some internal studios, like BioWare, have reportedly expressed reservations. Currently, shareholder approval indicates that management and investors view this acquisition as a major strategic opportunity. The remaining question is whether regulatory authorities will share this perspective.

In Case You Missed It

In gaming news that’s got us jumping for joy, AI is set to shake up the industry in ways we’re just beginning to grasp. Carlos Mendoza’s latest post, “5-Year Productions Could Last 2 Thanks to AI”, explores how game developers like Akihiro Hino are embracing artificial intelligence to potentially halve production times, bringing our favorite games to life twice as fast 5-Year Productions Could Last 2 Thanks to AI. But that’s not all! While we’ve been chatting about video game adaptations, Sophie Laurent has been busy dropping some major news. The Sleeping Dogs film has finally found its director – and what a find it is! Timo Tjahjanto, the mastermind behind “The Night Comes For Us”, will be bringing his unique style to this gritty urban thriller, with Simu Liu already on board Sleeping Dogs Film Finds Its Director – He’s Indonesian, Responsible for the Acclaimed ‘The Night Comes For Us’!. And if that wasn’t enough to get your heart racing, hold onto your pip-boys because Jonathan Dubinski has just leaked a huge surprise – Amazon is reportedly cooking up a live-action reality TV show adaptation of the Fallout franchise! Titled “Fallout Shelter”, this new project promises to immerse contestants in the post-apocalyptic world as they compete to build and manage vault shelters. You won’t want to miss Dubinski’s insightful article on this explosive news Fallout: Another Big Surprise Leaked, Poised to be a Huge Hit.