Riyadh: For years, tech-focused buyout group Silver Lake coveted video game developer Electronic Arts, the power behind the popular “Battlefield” and “Madden NFL” series.
According to Radio Television Brunei, in a brainstorming session this spring, Silver Lake investors and U.S. President Trump’s son-in-law Jared Kushner started hammering out plans for what became the world’s largest leveraged buyout. Three sources familiar with the talks said the discussions began between Silver Lake co-CEO Egon Durban and Kushner.
Backed by Saudi Arabia’s Public Investment Fund (PIF), the $55 billion deal announced on Monday will enlarge Silver Lake’s games, sports, and entertainment portfolio while giving the sovereign wealth fund an asset it may want to hold on to for a long time. EA was first approached in the summer, the sources said.
PIF will end up as EA’s majority shareholder while Kushner’s private equity fund Affinity Partners will own 5%, according to one of the sources. Given that PIF already owned almost 10%
of EA before the deal, based on LSEG data, and had gaming investments, it made sense for Silver Lake to look at the fund as a natural partner. Kushner played an important role in brokering the deal, the source noted.