EA’s Mega Takeover: Saudi Arabia Cashes In!

The Shareholders Speak

Well, it’s official folks! Electronic Arts’ shareholders have showered their blessing on the takeover led by none other than Saudi Arabia’s Public Investment Fund. It was about as surprising as a cat video going viral on the internet—everyone kind of knew it was going to happen. The voting process, while prestigious, showed no signs of suspense. Over 201 million votes in favor of the deal zigzagged through, while just 1.9 million votes tried to throw a wrench in the gears. A measly 90,000 folks opted out entirely. The compensation vote for EA’s top brass had a little more drama, but it wasn’t exactly a nail-biter either. With 1.3 billion votes for and a tiny 25 million against—let’s just say the yes votes took the crown on this one.

Dollars and Sense: What’s the Deal?

What’s on the table, you ask? A staggering $55 billion! Yes, your eyes do not deceive you. EA is being taken private at a fantastical price of $210 per share, which is a sweet 25% more than its value just a month ago. That’s a boatload of cash, which ironically makes it the largest leveraged buyout ever. But hang on to your controllers because the $20 billion loan needed to fund this extravaganza leaves EA teetering on the precipice of a financial roller coaster.

Why the drama, you might be wondering? Well, it seems like Saudi Arabia is getting cozy with the gaming scene, with investments bubbling up in companies like Capcom, Nintendo, and others, proving that they love cashing in on gaming—and sports too, as they scoop up major players in sports entertainment.

Then comes the real kicker! While shareholders are cheering, the deal still needs to clear regulatory hurdles! Not to rain on the parade, but it is headed by crown prince Mohammed bin Salman, who’s kind of the big cheese over there in Saudi Arabia. With connections to high-profile stakeholders like Jared Kushner, this deal isn’t just a walk in the park. If it goes through, EA’s values are apparently going to remain “unchanged”—we’ll just have to hold our breath on that one!

So keep your gamepads charged and your eyes peeled because this colossal takeover has only just begun, and there’s plenty of more cha-ching in EA’s future or is it just a mirage? Time will tell!