Electronic Arts has announced it is being acquired and taken private in a $55 billion deal involving Silver Lake, Saudi Arabia’s Public Investment Fund, and Affinity Partners, which is founded and led by Donald Trump’s son-in-law, Jared Kushner.
The deal is expected to close in the first quarter of 2027 and is still subject to approval by regulators and EA stockholders.
The transaction was approved by EA’s Board of Directors, is expected to close in Q1 FY27 and is subject to customary closing conditions, including receipt of required regulatory approvals and approval by EA stockholders. Following the close of the transaction, EA’s common stock will no longer be listed on any public market.
The transaction will be funded by a combination of cash from each of PIF, Silver Lake, and Affinity Partners as well as roll-over of PIF’s existing stake in EA, constituting an equity investment of approximately $36 billion, and $20 billion of debt financing fully and solely committed by JPMorgan Chase Bank, N.A., $18 billion of which is expected to be funded at close. Each of PIF, Silver Lake, and Affinity Partners plan to fund the equity component of the financing entirely from capital under their respective control.
Upon completion of the transaction, EA will remain headquartered in Redwood City, California and continue to be led by Andrew Wilson as CEO.
PIF, which already holds a nearly 10 percent stake in EA and has also poured money into Affinity Partners, also invests in other gaming giants like Nintendo, Take-Two Interactive, and Capcom.
“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work,†said EA CEO Andrew Wilson.
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Original Source: https://www.theverge.com/news/787112/electronic-arts-55-billion-privacte-acquisition-pif-silver-lake-affinity-partners
Original Source: https://www.theverge.com/news/787112/electronic-arts-55-billion-privacte-acquisition-pif-silver-lake-affinity-partners
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