Electronic Arts To Be Taken Private In Largest Leveraged Buyout In History Led By Saudi PIF

Benzinga

Electronic Arts agreed to a $55 billion sale, marking the largest leveraged buyout in history. Backed by Saudi Arabia’s Public Investment Fund, Jared Kushner’s Affinity Partners, and Silver Lake, the deal includes $20 billion in JPMorgan financing. EA will stay in California under CEO Andrew Wilson as shares jumped on the news.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Electronic Arts agreed to sell itself for $55 billion in what would be the largest leveraged buyout in history, according to Reuters.

00:09Saudi Arabia's public investment fund, Jared Kushner's Affinity Partners, and private equity firm Silver Lake are backing the deal with $36 billion in cash, existing equity, and $20 billion in debt financed by J.P. Morgan.

00:21EA shareholders received $210 per share in cash, a 25% premium to its September 25th close.

00:26Transaction expected to close in the first fiscal quarter of 2027, underscores Saudi Arabia's push into gaming, and signals a revival of mega deals.

00:35Company will remain in Redwood City, California, with CEO Andrew Wilson continuing to lead.

00:40Shares rose 5% Monday to about $202.54.

00:44For all things money, visit Benzinga.com.

Category

Transcript

Comments

Recommended