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Filing Shows Saudi Fund Would Control 93% of EA in $55 Billion Buyout Plan

A Brazilian filing reveals the PIF would be the dominant owner, a structure that faces regulatory and shareholder review.

Overview

  • The Wall Street Journal, citing a Brazilian antitrust filing, reports the PIF would hold 93.4% of EA, with Silver Lake at 5.5% and Affinity Partners at 1.1%.
  • The consortium plans roughly $36.4 billion in equity and about $20 billion in debt, with the PIF expected to supply around $29 billion and it is also a significant investor in the other two firms.
  • The deal would take EA private in what would be the largest leveraged buyout to date, with closing targeted next year pending approvals and a shareholder vote scheduled later this month.
  • EA has told employees it will retain creative control and that the transaction will not result in immediate layoffs.
  • U.S. lawmakers, unions and human-rights groups are pressing for close scrutiny of foreign control, while the PIF rejects liquidity concerns and says it holds about $60 billion in cash and similar instruments.