"Saudi Arabia's Public Investment Fund (PiF) are on the verge of taking another major step in their acquisition of sport, but this time in the virtual world. The PiF, an arm of the Saudi royal family, has combined forces with US President Donald Trump's son-in-law, Jared Kushner, and US investment firm Silver Lake to buy video game company Electronic Arts (EA) for $55 billion (47 billion) subject to final approval."
"This will make it the largest private equity-funded buyout in history and a significant amount of the purchase price is made up of borrowed money. The PiF had previously owned about 10% of EA. EA makes a host of successful games, with sports titles like EA FC (previously FIFA) and Madden NFL, key to its commercial success. The size of this deal dwarfs other PiF investment in sports, such as LIV Golf or the purchase of Premier League team, Newcastle United."
"As the world attempts slowly to move away from fossil fuels, the motivation to diversify the economy is clear, as is the push towards sports and entertainment, which also offers a sheen to the country's global reputation. Saudi has eSports strategy and domestic concerns "PIF is uniquely positioned in the global gaming and eSports sectors, building and supporting ecosystems that connect fans, developers, and IP creators," said Turqi Alnowaiser, deputy governor and head of international investments at PIF."
Saudi Arabia's Public Investment Fund, alongside Jared Kushner and Silver Lake, is set to buy Electronic Arts for $55 billion pending final approval. The transaction would be the largest private equity-funded buyout in history and heavily debt-financed. PiF previously held roughly 10% of EA, whose portfolio includes major sports franchises EA FC and Madden NFL. The deal far exceeds prior PiF sports investments like LIV Golf and Newcastle United. The acquisition aligns with Saudi Vision 2030 goals to diversify away from oil reliance by investing in sports, entertainment, and gaming to enhance economic diversification and international reputation.
Read at www.dw.com
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