Electronic Arts Trading Near Buyout Premium

27 days ago

Paul Sweeney and team

"Electronic Arts is ticker EA. We have this stock in focus today up as much as 5.4%. This, of course, is after the historic leverage buyout deal that we're seeing happening here. So Electronic Arts has agreed to sell to a group of private investors. The deal should be about $55 billion. The consortium that they're selling it toward or our Silver Lake Management, a Saudi Arabia public investment fund, they agreed to pay $210 per share in cash for the company. So this does represent a 25% premium to where shares traded before talks did leak here."

The segment details the leverage buyout of EA at a $210 per share cash offer, representing a significant premium. While not an explicit buy call, the commentary highlights EA's record high levels, indicating strong market sentiment amid the deal.

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