==Electronic Arts (EA) to be acquired by PIF-led consortium for $55 bln, or $210/share

 

Electronic Arts to be acquired by PIF-led consortium for $55 bln, or $210/share, in all-cash deal 

• EA announced that it has entered into a definitive agreement to be acquired by an investor consortium comprised of PIF, Silver Lake, and Affinity Partners in an all-cash transaction that values EA at an enterprise value of approximately $55 billion. The transaction positions EA to accelerate innovation and growth to build the future of entertainment.
• Under the terms of the agreement, the Consortium will acquire 100% of EA, with PIF rolling over its existing 9.9% stake in the Company. EA stockholders will receive $210 per share in cash. The per share purchase price represents a 25% premium to EA's unaffected share price of $168.32 at market close on September 25, 2025, the last fully unaffected trading day, and a premium to EA's unaffected all-time high of $179.01 at market close on August 14, 2025.
• 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.
• As a result of this announcement, for its Q2 FY26 earnings release scheduled for October 28, 2025, EA will release financial and operational results through a press release and will not hold a conference call or webcast.
• EA must pay up to $1 bln (reduced to $540 mln in certain cases) if it backs out for a superior offer or fails to secure shareholder approval, while the buyer consortium must pay $1 bln if regulatory approvals fail, the deal times out, or it breaches the agreement.