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Video-game giant EA going private in $55B deal — in biggest leveraged buyout in Wall Street history
New York Post· 2025-09-29 15:18
Core Viewpoint - Electronic Arts (EA) is going private in an all-cash deal valued at $55 billion, marking the largest leveraged buyout in Wall Street history, with shareholders receiving $210 per share [1][10]. Company Overview - EA is renowned for popular video games such as The Sims, Madden NFL series, and FIFA, and has been in the gaming industry since 1982 [4][10]. - The company’s market value increased from approximately $43 billion to a record high of around $48 billion following the announcement of the deal [4]. Deal Structure - The acquisition involves a $36 billion equity check and $20 billion in debt financing from JPMorgan [5][12]. - The Public Investment Fund of Saudi Arabia (PIF) will roll over its existing 9.9% stake and become the majority investor in the new structure [4]. Investor Insights - Jared Kushner, leading Affinity Partners, expressed excitement about EA's management and vision for the future, highlighting a personal connection to the company's games [5]. - Silver Lake, a technology-focused private equity firm managing about $110 billion, is also a key investor in this deal [8]. Timeline and Future Outlook - The deal is expected to close in the first quarter of fiscal year 2027, with a 45-day window for other proposals [8]. - EA's CEO, Andrew Wilson, expressed enthusiasm about continuing as CEO and pushing the boundaries of entertainment, sports, and technology [7].