A vast majority of shareholders in gaming company Electronic Arts have voted to approve a takeover of the company by a consortium led by the Saudi Arabian Public Investment Fund. The massive deal still needs regulatory approval.
A vast majority of shareholders in gaming company Electronic Arts have voted to approve a takeover of the company by a consortium led by the Saudi Arabian Public Investment Fund. The massive deal still needs regulatory approval.
The takeover was approved by 201 million votes, with only 1.9 million against and 90,000 abstentions, PC Gamer reports, citing Bloomberg. EA has been a public company since 1990, but will now go private in a deal valued at $55 billion, with current shareholders receiving $210 per share.
The acquisition, which would require a $20 billion loan, puts EA at enormous risk. In recent years, Saudi Arabia has invested in numerous gaming companies through PIF or Savvy Games Group, including Capcom, Embracer, ESL, Nexon, Nintendo and Take-Two, as well as real-life sports organizations such as Newcastle United FC and the LIV Golf tour.
Shareholder approval is just the first hurdle to clear: the Saudi-led acquisition still needs regulatory approval, but it’s unlikely to be a problem. The fund is led by Crown Prince Mohammed bin Salman, Saudi Arabia’s de facto ruler and a good friend of US President Donald Trump, while Affinity Partners, one of two minority shareholders in the deal, is owned by Jared Kushner, Trump’s son-in-law.
EA develops and publishes games in well-known franchises, including Battlefield, Need for Speed, The Sims, Medal of Honor, Command & Conquer, Dead Space, Mass Effect, Dragon Age, Army of Two, Apex Legends, and Star Wars. In addition, the company publishes sports series under the EA Sports brand, the most famous of which is FC (formerly FIFA).
The news of Saudi Arabia’s involvement in the EA buyout has raised concerns among gamers and gaming journalists that EA games like The Sims will be censored. However, EA CEO Andrew Wilson, who will remain in office if the deal goes through, has previously said that the company’s values "will remain the same.»
Recall that this week , 55-year-old game developer Vince Zampella, who worked on such popular game series as Call of Duty, Medal of Honor and Titanfall, died. In recent years, he worked for EA on the Battlefield series.
