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47m ago

Electronic Arts to Go Private in Record $55 Billion Leveraged Buyout Led by Saudi PIF, Silver Lake and Affinity

The buyers outlined $36 billion in equity plus $20 billion in committed debt, with closing targeted in EA’s fiscal first quarter of 2027 pending approvals.

EA (Eletronic Arts) Sports logo is seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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EA to go private in colossal $55 billion deal ahead of Battlefield 6 launch

Overview

  • EA stockholders will receive $210 in cash per share, a 25% premium to the last unaffected price before reports of a deal.
  • The buyer group comprises Saudi Arabia’s Public Investment Fund, Silver Lake and Affinity Partners, with PIF rolling over its 9.9% stake.
  • Financing includes about $36 billion of equity plus $20 billion of JPMorgan-committed debt, with $18 billion expected to fund at closing.
  • EA will keep Andrew Wilson as CEO and its Redwood City, California headquarters, with the transaction contingent on shareholder and regulatory approvals.
  • The deal is described as the largest leveraged buyout on record and includes a $1 billion termination fee payable by EA under certain conditions, while PIF’s role has drawn public and political scrutiny.