This article examines the details of a proposed acquisition involving a renowned video game publisher and a diverse group of investors, highlighting the distinctive shift in control that may occur and the structure of the financial arrangement.
Recent reports indicate that a major video game publisher is set to be taken over by a coalition of investors that includes a prominent state fund from Saudi Arabia, an investment firm associated with a notable political figure's family, and Silver Lake. Initially valued at an impressive US$55 billion, the deal was expected to distribute ownership evenly among the parties involved. However, emerging information suggests that the distribution will be far from balanced.
An article from a leading financial publication states that if the transaction is finalized, the Saudi fund could secure ownership of up to 93.4% of the publisher, while Silver Lake might receive only 5.5% and the additional investment firm may obtain a negligible 1.1%. With such a division, the control of the company would largely shift to the Saudi party upon completion of the deal.
The structure of the arrangement is outlined in a filing by a South American antitrust authority. The plan calls for US$36.4 billion to be allocated in exchange for equity, with an extra US$20 billion imposed as debt on the company. Notably, the equity portion includes an estimated US$29 billion from the Saudi fund, which had already acquired a stake of US$5.2 billion in the publisher prior to the announcement.
- The acquisition is valued at US$55 billion.
- The Saudi fund could hold up to 93.4% of the company.
- Silver Lake may receive 5.5%, with the remaining partner holding 1.1%.
- The deal involves US$36.4 billion in equity and US$20 billion in debt.
- It is slated to potentially conclude during the 2027 fiscal year, though such large-scale transactions often face regulatory challenges.
Despite potential hurdles similar to those seen in other major industry deals, the publisher is confident that it will continue to have artistic and operational autonomy if and when the acquisition is approved. The unfolding of this deal promises to reshape control in a significant part of the gaming industry.