this post was submitted on 05 Aug 2026
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I'm gonna need you to explain how the Saudis paying the shareholders of EA creates an equal sized debt the company (now the Saudis) has to repay
I haven't looked into the specifics of this buyout, but how they usually work is that the company doing the buyout uses a mix of cash on hand and loans from banks (aka debt) to make the purchase. They use the combined pool of money to pay buy the stock from the shareholders and then when they have a controlling stake in the company, they can tell the company "You owe us the amount of debt we just took to buy you," and since they control the board of the company they can "accept the terms" they've just set for themselves.
This is the exact playbook private equity uses to buy middlingly successful companies and just sell off everything for parts to get a return on their investment.