Saudi fund, Kushner’s firm to buy games maker Electronic Arts in $55bn deal

Key Concepts

• Saudi Investment in US Entertainment Industry
• Jared Kushner's Role and Relationship with Saudi Arabia
• Public Investment Fund (PIF)
• Electronic Arts (EA) Acquisition
• Transformation of Saudi Society
• Recognition of Israel and Abraham Accords

Saudi Arabia's Investment in Electronic Arts

The latest significant move by Saudi Arabia into the US economy involves the video game industry. The Kingdom is reportedly backing a consortium, orchestrated by Jared Kushner, President Trump's son-in-law and advisor, with the aim of acquiring Electronic Arts (EA). EA is a major player in the gaming sector, known for producing and distributing highly popular titles such as "Battlefield," "The Sims," and "Madden NFL."

Funding and Key Figures

The capital for this potential acquisition is slated to come from Saudi Arabia's Public Investment Fund (PIF), which is overseen by Prince Muhammad bin Salman. Jared Kushner, who played a prominent role in the White House during President Trump's tenure, developed a close personal relationship with Muhammad bin Salman during his first state visit to Saudi Arabia in May 2017.

Kushner's Perspective on Saudi Transformation

Jared Kushner has expressed strong support for the changes occurring in Saudi Arabia, attributing them to Muhammad bin Salman. He stated, "I think what's happened there is absolutely critical. The person who deserves credit for that is Muhammad ben Salman who at that time was the deputy crown prince and I think what he's done has been absolutely historic for the country. I think he's done a lot of things that are in America's interest and I think he's done a lot of things that have made the world a better place."

Shifting Saudi Moral Code and Geopolitical Implications

The fact that Saudi Arabia is investing in the US entertainment industry is presented as evidence of significant societal changes within the Kingdom. Historically, such investments might have conflicted with the country's strict moral code. Furthermore, Kushner is positioned as a key figure in advocating for Saudi Arabia to consider significant policy shifts, including the recognition of Israel. This initiative is framed within the broader context of the Abraham Accords.

Regulatory Hurdles and Broader Strategy

While the proposed acquisition of Electronic Arts still faces several regulatory obstacles, it is viewed by Kushner as part of a larger strategic objective. This strategy emphasizes the power of personal relationships to foster mutual profit, drive societal transformation, and potentially solidify key aspects of the Abraham Accords.

Conclusion

The potential acquisition of Electronic Arts by a Saudi-backed consortium, facilitated by Jared Kushner, highlights a new phase of Saudi economic engagement with the US, particularly in the entertainment sector. This move is intertwined with Kushner's advocacy for Saudi societal reforms and its geopolitical alignment, suggesting a strategy where personal diplomacy and economic investment converge to achieve broader objectives.