Yuck!: Jared Kushner & The Saudis Now Own EA
Are We Witnessing The MAGAfication of Video Games? : Jared Kushner & The Saudis Get Their Hands On EA After $55 Billion Buyout - Page 2
EA (Electronic Arts) announced that it has been acquired and is now a private company.
The video game publisher was bought out in an all-cash $55 billion deal involving Silver Lake, Saudi Arabia’s Public Investment Fund, and Affinity Partners, which was founded by Donald Trump’s son-in-law, Jared Kushner.
According to The Verge, the deal is expected to close in the first fiscal quarter of 2027, pending approval from regulators and EA stockholders.
The deal will also see stockholders paid $210 per share, a 25% premium over EA’s current stock price.
The buyout comes as EA is set to drop Battlefield 6 on October 10, with a new Mass Effect game and Iron Man currently in development.
Per The Verge:
The transaction was approved by EA’s Board of Directors, is expected to close in Q1 FY27 and is subject to customary closing conditions, including receipt of required regulatory approvals and approval by EA stockholders. Following the close of the transaction, EA’s common stock will no longer be listed on any public market.
The transaction will be funded by a combination of cash from each of PIF, Silver Lake, and Affinity Partners as well as roll-over of PIF’s existing stake in EA, constituting an equity investment of approximately $36 billion, and $20 billion of debt financing fully and solely committed by JPMorgan Chase Bank, N.A., $18 billion of which is expected to be funded at close. Each of PIF, Silver Lake, and Affinity Partners plan to fund the equity component of the financing entirely from capital under their respective control.
Upon completion of the transaction, EA will remain headquartered in Redwood City, California and continue to be led by Andrew Wilson as CEO.
EA’s New Owners Will Lean Heavily Into AI Use
The Financial Times also reports that EA’s new owners won’t be shy about the use of AI becuase they feel it will be able to “significantly cut CEA’s operating costs.”
The company is looking to utilize AI as a way to also “boost EA’s profits in the coming years,” which the report claims will enable the new owners “to manage a large debt load on a company that historically carried limited net debt.”
The Reactions To EA’s Buyout Are Not Positive
The gaming world is reacting to the news of EA’s buyout, which puts the company in the hands of one of the world’s biggest human rights violators, and Jared Kushner; spoiler alert, no one is excited.
“EA selling to Saudi Arabia and Jared Kushner’s firm is about the most EA thing I can think of,” Forbes Paul Tassi wrote on X, formerly Twitter.
Yup. It sure is. It also looks like we are witnessing the MAGAfication of video games.
You can see more reactions below.
Are We Witnessing The MAGAfication of Video Games? : Jared Kushner & The Saudis Get Their Hands On EA After $55 Billion Buyout - Page 2 was originally published on ionehiphopwired.staging.go.ione.nyc
