How did Jared Kushner mediate with the acquisition of electronic arts of $ 55 billion

Electronic arts have been cleared for years by the sovereign wealth fund in the Kingdom of Saudi Arabia and the Milliard Maker Egon Durban. But it was the son -in -law of Donald Trump Jared Kushner who opened his acquisition of $ 55 billion.

KushnerShe is married to Trump’s older daughter Ivanka, she started drawing the largest purchase in the history of Wall Street earlier this year with Derban, who is participating in Silver Leck, which focuses on technology -focused technology.

They approached EAThe name “Eagle” by deals makers, with a fixed offer about a month ago. In the face of a strong group of offers of offers that extend from Riyadh to Washington, the EA council has been dug to extract the highest possible price.

On Monday, EA’s acquisition of an increase in the financial axis between the orbit of the American president and the most powerful Washington ally in the Arab world.

the 55 billion dollars buying – With the support of $ 36 billion in stocks and $ 20 billion in JPMORGAN debts – Kushner pushed the spotlight in Wall Street. He worked as a major figure in building a bold acquisition.

People who have been informed of this issue said that Kushner Investment Company will eventually end with the possession of about 5 percent of EA. These persons added that the PIPs Fund (PIF) will become the owner of the majority of the video game maker as the largest shares examination, followed by Silver Lake, which will be a major minority contributor.

Persons participating in the deal refused to comment behind their general data.

Derban was studying an EA’s acquisition for more than a decade. But it was Kushner who persuaded Beef to go to a special offer, the people who have seen this said.

Kushner took advantage of the deep relations that was built in the Kingdom of Saudi Arabia as the largest envoy during the first Trump presidency. The EA administration also took several flights to the Kingdom with the progress of the transaction. Turqi Alnowaiser, PIF’s deputy governor, led the fund negotiations.

The deal is the bold bet of Silver Lake and Kushner’s Affinity Partners, the wealth fund in the Kingdom of Saudi Arabia and the largest bank in America. They are betting on artificial intelligence will nourish an entertainment boom and make savings in the costs of major companies by reducing production expenses for games.

Ultimately, the acquisition won the support of Crown Prince Mohammed bin Salman and Jelly Damon, Jimmy Damon, the leading banker in America. The insiders expect the American president to invite, because he treats Riyadh as an important American ally.

“Kushner has a personal relationship and has profound relations in Saudi Arabia. It is very comfortable working in the Middle East. He has created a basis for confidence,” said a person who briefed in the talks.

Over the past decade, the Crown Prince has made billions of dollars in relevant technology and investments as part of his career to diversify the country’s economy away from oil. He allocated $ 38 billion for investments via the PIF game unit in video game companies, one of his favorite hobbies.

PIF also carries stakes in other companies in the sector such as Nintendo and Take-Two Interactive.

EA, in which PIF has already invested on billions of dollars, confirms this effort financially and culturally, in a kingdom, and even recent years, has banned cinemas and concerts but now seeks to put themselves as a global center for entertainment and innovation.

Derban from Silver Lake studied an acquisition of EA in 2011, but a deal was never achieved. He was keen to work with Kushner, who was supported by PIF to the Fund’s rapprochement partners, believing that the company had been misunderstood by public markets.

EA’s video game addresses like EA SPORTS FC and Madden NFL It will add to large Silver Lake Blins to the sporting assets, such as the parent company of the Ultimate Fighting Championship. The company believes that artificial intelligence will lead to an explosion of free time, which leads to increasing spending on sports and entertainment.

One of the senior consultants in the talks said: “These are one of the largest investors in sports who now have the largest sports work focusing on games,” said one of the senior consultants in the talks.

The people said that the union is planning to invest additional money in EA or borrow more money to finance acquisitions. They added that buyers can also finance major acquisitions for other gaming companies using EA’s private shares. If the deal collapses, the federation condemns EA a billion dollar breaks.

The people who were briefed on this issue said that the primary axial moment in negotiating the acquisition that lasted for months took place on Labor Day when the first real offer fell.

“Although the first offer was less than the company’s expectations, it was close enough to provide the visual line in a deal,” said someone who briefed him.

EA shares ran on public markets for half a decade. Therefore, the Board of Directors decided to move forward and extract the largest possible number of buyers.

The company has recruited the Goldman Sachs and Elite Law Firm Wachtell LIPTON to negotiate the financial conditions, an effort law called Project Oak.

Their mission was to keep the line against Silver Lake, known in Wall Street as a difficult negotiating often unwillingly in the cave on the price.

Consortium prepared the defeated’s exit width in mid -September. They wanted one bank to arrange full financing, and to choose jpmorgan.

Derban made the call. JPMorgan Dimon CEO supported the efforts of Silver Lake and Michael Dell to get the EMC Corporation Technology Group a decade ago with a $ 50 billion debt package that eventually resulted in one of the largest Wall Street.

On September 17, Derban described the office of Damon. His secretary said that his boss was out of office in Washington – where executive managers are now spending more than time.

After a few minutes, Damon called again. The answer was quickly. JPMorgan will stand behind a $ 20 billion financing package, one of the largest companies to be classified without the degree of investment. Damon has instructed the capital market to be delivered in less than a week.

“Once there was Jpmorgan there, we knew that the deal had a real momentum,” said one of the persons involved in this operation. “By the last week of the talks, they were confident that the treatment would be closed,” they added.

Jupiter Group will pay 210 dollars per share, by 25 percent of EA’s share price on the day before the audience is. Andrew Wilson, CEO of EA, who was Al -Fadl on Monday, will retain its growing profits.

While a deal of this kind may face organizational scrutiny in Washington, many people said they expect the deal to pass somewhat easily, noting the effect of Kushner and Saudi Arabia on the White House.

“We are in an organizational environment welcoming (Saudi Arabia). We are not in the previous regime,” said a person who has seen the deal. They said that Kushner’s participation in the federation could be of value if the deal will unexpectedly strike an obstacle.

Or, as another person close to the Trump administration’s internal actions said: “What is the organizer who will say no to the president’s son -in -law?”