"The video-game company he has led since 2013 announced on Monday that it will go private in a $55 billion all-cash deal backed by Saudi Arabia's sovereign wealth fund, as well as the investment firms Silver Lake and Affinity Partners. It is the largest leveraged buyout in history, and shareholders will get a premium of around 25% on Thursday's closing share price, the parties involved said in a joint statement. Wilson, who assumed the additional title of chairman in 2021, will continue as CEO."
"The deal appears to bode well for EA, industry observers told Business Insider. They say the price is fair, especially as the company had no other serious buyers looming, largely due to the tough antitrust landscape. It took Microsoft nearly two years of battling regulators in the US, the European Union, and the UK, for example, to close its acquisition of Activision Blizzard in 2023."
"For Wilson, though, the future is less clear. On the one hand, taking EA private means he will no longer be beholden to the whims of shareholders, who earlier this year punished the company for cutting its fiscal-year outlook mainly due to challenges with its flagship soccer franchise, "EA Sports FC," formerly known as "FIFA." Shares plummeted nearly 17% on January 23, marking their biggest single-day decline in nearly 17 years."
Electronic Arts will go private in a $55 billion all-cash deal backed by Saudi Arabia's sovereign wealth fund, Silver Lake, and Affinity Partners. The transaction is the largest leveraged buyout in history and offers shareholders roughly a 25% premium on the recent closing price. Andrew Wilson, who became chairman in 2021 and has led the company since 2013, will remain CEO. Taking the company private removes public-market pressure after a sharp share decline tied to challenges with the EA Sports FC franchise and a cut to fiscal guidance. Antitrust hurdles limited other bidders, and new owners may set fresh demands.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]