Electronic Arts said it agreed to be taken private in a transaction valuing the game publisher at about $55 billion, with shareholders to receive $210 per share in cash. The buyer consortium includes Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners.
EA disclosed the definitive agreement in its press release, while Reuters reported the price, debt mix, and that the deal would be the largest leveraged buyout on record.
$210/share, record LBO; $20B debt package led by JPMorgan
The offer implies equity value of ~$52.54 billion and enterprise value near $55 billion, a ~25% premium to EA’s $168.32 close on Sept. 25. The consortium plans about $36 billion in equity and $20 billion in debt, with $18 billion of the debt expected to fund at closing, largely arranged by JPMorgan Chase.
Leadership, location, and timing: Wilson stays; Q1 FY27 close
EA will keep its headquarters in Redwood City, California, and CEO Andrew Wilson will continue to lead the company. The companies expect closing in EA’s fiscal Q1 2027, that’s April–June 2026, subject to shareholder and regulatory approvals.
Existing PIF stake rolls; break fee set at $1B
PIF, which already owns about 9.9% of EA, is rolling its stake into the deal. The merger agreement includes a $1 billion termination fee payable by EA under specified conditions; the consortium faces a reciprocal fee if delays or breaches prevent closing by Sept. 28, 2026.
Market and industry context
The buyout eclipses the 2007 takeover of TXU and comes amid ongoing consolidation in gaming. Shares rose intraday to around $203 following the announcement. Analysts at Benchmark argued the $210 price “falls materially short” of EA’s intrinsic value given the pipeline.
What’s next: approvals and filings
- EA shareholder vote: Proxy materials to follow; closing targeted Apr–Jun 2026 (Q1 FY27).
- Regulatory review: Antitrust and foreign-investment clearances; debt financing funding ($18B at close) planned per the announcement day reporting.
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