Takeover by consortium: EA wants to retain creative control
The consortium that wants to buy EA includes the Saudi Arabian sovereign wealth fund. However, EA wants to retain creative control, the company writes in an FAQ.
(Image: Shutterstock.com/Sergei Elagin)
The investment firm of Trump's son-in-law Jared Kushner and the Saudi Arabian sovereign wealth fund: The planned EA purchase by a consortium raises concerns among employees and gamers about influence. In an FAQ distributed to employees, the US-American game publisher downplays these concerns: they will retain creative control even after the deal.
“The consortium believes in our vision, our leadership, and the strength of our teams. It is investing in EA because it is convinced that we are uniquely positioned to lead the future of entertainment,” writes EA in the document, which journalist Stephen Totilo has published. “EA will retain creative control, and our proven creative freedom and our player-first values will remain fully intact.”
The document makes further lip service: for example, there will be no immediate layoffs due to the takeover. An absolute job guarantee looks different, especially since EA has already laid off numerous employees or reassigned them to other projects in recent months.
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20 billion US dollars in debt
The consortium wants to buy Electronic Arts for 55 billion US dollars and take it private. The buyers are the Saudi Arabian sovereign wealth fund (Public Investment Fund, PIF) as well as Silver Lake and the investment firm Affinity Partners, founded by Donald Trump's son-in-law, Jared Kushner. The transaction is expected to be completed in the next six to nine months. The sum of 55 billion US dollars is divided into equity investment of 36 billion US dollars and a debt component of 20 billion US dollars.
This debt component does not mean that EA cannot grow, the company writes in the FAQ. Even as a private company, they will seize growth opportunities and possibly acquire other companies. Furthermore, as a private company, they will enjoy more financial freedom to pursue long-term projects. “As a private company, EA can pursue a longer-term investment horizon and has more room to implement bold strategies without having to consider quarterly market reactions,” EA writes in the FAQ.
(dahe)
