Electronic Arts Buyers Might Be Paying Too Much for EA Stock

Published 1 month ago Positive
Electronic Arts Buyers Might Be Paying Too Much for EA Stock
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The $55 billion Electronic Arts leveraged buyout unveiled Monday could prove a difficult deal for Silver Lake and other buyers to earn a high return on their investment. The buyers are paying a lofty price and putting up a substantial amount of equity, which both work against generating an ample return, assuming the deal gains shareholder approval. Electronic Arts, the big producer of videogames, agreed Monday to a $55 billion deal, including debt, with Silver Lake, a leading technology investment firm; PIF, the Saudi Arabian sovereign-wealth fund; and Affinity Partners, headed by Jared Kushner.

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