99% of EA shareholders vote in favor of $55 billion leveraged buyout

The vast majority of EA's shareholders have voted in favor of the $55 billion leveraged buyout, which nets shareholders a 25% premium of $210 per share.

99% of EA shareholders vote in favor of $55 billion leveraged buyout
Comment IconFacebook IconX IconReddit Icon
Senior Gaming Editor
Published
1 minute & 45 seconds read time
TL;DR: Electronic Arts shareholders approved a $55 billion buyout led by Saudi Arabia's Public Investment Fund, granting it a 93% stake and taking EA private. The deal aims to provide EA greater creative freedom and long-term planning, while concerns remain about the future of studios like BioWare.

Over 201 million of EA's total ~203 million investors have voted in favor of selling all outstanding shares to a group of buyers led by Saudi Arabia's Public Investment Fund.

99% of EA shareholders vote in favor of $55 billion leveraged buyout 2
3

It's official: Electronic Arts, one of the last big AAA publishers in the video game industry, is going private. EA shareholders approved the megaton $55 billion buyout with a vote on December 22. According to the SEC filing, 99% of shareholders voted yes on the deal, with 1.9 million voting no.

The buyout is being financed by a trio of big investors, but the principal funding will come from Saudi Arabia's PIF. As a result, it's estimated that the Saudis will receive a staggering 93% stake in EA. As part of the proposal, EA's management will remain intact and CEO Andrew Wilson will still lead the company.

99% of EA shareholders vote in favor of $55 billion leveraged buyout 1
3

Other investors helping fund the deal are Silver Lake, and Jared Kushner's Affinity Partners.

It remains unclear how EA will evolve over the coming years. Company executives have praised the deal, with Glu Mobile CEO Nick Earl saying that EA's privatization will give it much more freedom to plan the next decade of games, content, and services.

EA's most lucrative enterprise is its enviable catalog of annualized sports games, a unique array of titles that serve the distinct tastes of both the West and Europe. EA generates billions of dollars a year from its lucrative Ultimate Team microtransactions--and that's on top of the upfront cost of a full-priced game.

Fans remain worried about outliers like BioWare, a boutique video game developer responsible for high-profile RPG franchises like Mass Effect and Dragon Age. The developer has delivered three back-to-back failures with Mass Effect Andromeda, Anthem, and the poorly-selling Dragon Age Veilguard, and it's unclear what could happen to the studio should its next project, a Mass Effect sequel, fails.