EA’s sale shows how sovereign wealth and private equity are rewriting the playbook for mega buyouts.
Topline
Electronic Arts will go private in a $55 billion all cash buyout led by Saudy Arabia’s Public Investment Fund, Silver Lake and Jared Kushner’s Affinity Partners, the largest leveraged buyout on record and a high stakes wager that one of gaming’s most iconic publishers can scale faster off Wall Street.Key Facts
EA struck a definitive agreement that values the company at about $55 billion, with stockholders set to receive $210 per share in cash.
The consortium of the Saudi’s PIF, Silver Lake and Affinity Partners will acquire 100% of EA, with PIF keeping its nearly 10% ownership by rolling those shares into the new private company rather than cashing out.
Financing includes roughly $36 billion in equity and $20 billion in committed debt from JP Morgan, with $18 billion expected at close.
