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Jared Kushner leads record £40bn buyout of video games giant
Yahoo Finance· 2025-09-29 18:22
Core Insights - Jared Kushner's private equity firm, Affinity Partners, is leading a record $55 billion takeover of Electronic Arts (EA), marking the largest debt-fueled acquisition in history [1][3] - The deal involves a consortium that includes Saudi Arabia's Public Investment Fund (PIF) and US buyout firm Silver Lake [1][3] - EA is known for popular franchises such as FIFA (now EA Sports FC), Battlefield, and The Sims, and the acquisition price includes a significant cash premium for shareholders [3][6] Company Overview - Electronic Arts (EA) is a major player in the gaming industry, recognized for its iconic franchises, including Madden NFL in the US [3] - The acquisition will see EA shareholders receiving $210 per share, which represents a 25% premium over the current share price [6] Financial Implications - The $55 billion price tag includes approximately $20 billion in debt funding from JP Morgan, setting a new record for leveraged buyouts [3][4] - This acquisition surpasses the previous record of $45 billion for the TXU takeover in 2007, highlighting a significant moment in Wall Street's history [4] Industry Context - This deal is the second-largest gaming acquisition in history, following Microsoft's $69 billion purchase of Activision Blizzard in 2023 [5] - The involvement of Saudi Arabia's PIF indicates a strategic move to diversify investments into technology and media sectors, moving away from traditional oil and gas reliance [6][7]