Key facts
- New owners
- Saudi Arabian Private Investment Fund (PIF), Jared Kushner's Affinity Partners, and Silver Lake
- Deal timeline
- Announced last September, approved by shareholders in December, completed after a little over a month delay for regulatory approval
- Previous PIF stake
- 10% in EA
- PIF gaming investments
- Owns Niantic, has stakes in Riot Games, Nintendo, Take Two, Capcom, Embracer, Nexon, and Koei Tecmo
- EA Sports franchises
- Football, Formula 1, NFL, NHL, and UFC
Background
Electronic Arts, one of the biggest publishers in gaming, is now owned by the Saudi Arabian Private Investment Fund (PIF), Jared Kushner's Affinity Partners and Silver Lake, as the company is taken off the public stock market.
The deal was announced last September and approved by shareholders in December. It had been intended to complete by the end of June, but was held up by a little over a month while waiting for regulatory approval.
Prior to deciding to buy EA outright, the PIF already held a 10% stake in the company.
Current situation
EA CEO Andrew Wilson, who recently took a massive $30 million increase to his bonus for the successes of Battlefield 6 and laying off lots of people who worked on Battlefield 6, said that these new partners 'share our vision and ambition'.
PIF Deputy Governor Turqi Alnowaiser noted that 'Entertainment and sports are key areas of strategic focus for PIF,' while Silver Lake CEO Egon Durban waited absolutely no time to start touting 'what AI can do to enhance game development and player experience.'
Jared Kushner said something very bland, but is no doubt happy that this gambit worked when the FIFA Forward Enterprise just fell flat for his brother.
| Company | Stake |
|---|---|
| EA | 10% prior to buyout |
| Niantic | Owned |
| Riot Games | Stake |
| Nintendo | Stake |
| Take Two | Stake |
| Capcom | Stake |
| Embracer | Stake |
| Nexon | Stake |
| Koei Tecmo | Stake |
Impacts
The PIF and other Saudi investment funds have been prolific in spreading the country's wealth into various other industries, both to diversify the country's income to be more than just about selling oil, but also with the side effect of 'washing' this investment and the country's reputation through other businesses.
They also own Niantic, have stakes in Riot Games, Nintendo, Take Two, Capcom, Embracer, Nexon, and Koei Tecno. This acquisition gives the PIF a major route back to the world of sports, with EA Sports having the biggest games for football, Formula 1, NFL, NHL and UFC.
There are concerns about how Saudi Arabia could start to exert more soft power through this acquisition than they previously did with minority stakes. SNK, owned by the PIF adjacent Misk Foundation, crudely shoved state-backed Al-Nassr FC player Cristiano Ronaldo into Fatal Fury, in a bare-faced effort to merge investments.
Future outlook
Scenario analysis: The possibilities below are not certain predictions.
While it is not expected that Ronaldo will suddenly be the face of Battlefield 6 or something, perhaps the tenor and tone of The Sims shifts to downplay the LGBTQ+ representation and community that has built up around that series, or nudge the future of Mass Effect and other future titles in certain directions.
We'll have to wait and see. Similarly, we'll have to see if awareness about this buyout and the people and countries involved goes on to have a meaningful impact on EA's bottom line.
Source: thesixthaxis.com
