From ExtremeTech: Electronic Arts is heading for private ownership after spending about 36 years as a publicly traded company. The video game publisher is known for its long line of Battlefield and Sims games, along with other titles that have helped shape the video game industry. The investors partnering on this history-making purchase are Affinity Partners, Public Investment Fund, and Silver Lake.
The $55 billion leveraged buyout will be the biggest in history when completed, according to Reuters. That's an unexpected distinction for a video game maker, but the investors appear to have a wealth of faith in the company's prospects. As Reuters points out, EA shareholders will see roughly a 25% premium on the planned $210 per share.
On the other hand, some analysts think the private investment consortium could be getting a bargain. Benchmark analysts noted that Battlefield 6 is coming around the bend and will likely bring in billions in the next few years. They think the offer doesn't match EA's "intrinsic value."
View: Full Article
