Wachtell Lipton and Kirkland & Ellis have scored lead roles in video game maker EA’s $55bn acquisition by a consortium of investors, the largest take-private investment in history.
Wachtell is guiding EA, maker of video games such as Battlefield and The Sims, with the team led by corporate partners Edward Herlihy, David Lam and Eric Feinstein.
Meanwhile, Kirkland is advising the consortium, which includes private equity firm Silver Lake Partners, Saudi Arabia’s sovereign wealth fund PIF and Affinity Partners, the private equity firm run by Donald Trump’s son-in-law, Jared Kushner.
Kirkland’s team is also serving as lead legal counsel for PIF, with which it has a well-established relationship. The team is led by New York corporate partners Maggie Flores, Sarkis Jebejian and Jonathan Davis, alongside Miami-based corporate partner Lee Blum and Riyadh corporate partners Kamran Bajwa and Noor Al-Fawzan.
EA said the all-cash transaction, which values it at an enterprise value of around $55bn, positions it to accelerate innovation and growth. Sales in the video game industry surged during the Covid-19 pandemic, though EA’s games are expensive to make and the company’s annual revenues have been stagnant for the past three fiscal years, hovering from $7.4bn to $7.6bn, according to AP.
Under the terms of the deal, 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.
Four more law firms are working on the deal: Gibson Dunn & Crutcher is providing specialised counsel to PIF, while a Latham & Watkins team led by corporate partners Michael Anastasio, Ian Nussbaum and Charles Ruck, and Simpson Thacher & Bartlett are guiding Silver Lake. Sidley Austin is acting for Affinity Partners, with the deal team headed by partners Perry Shwachman, Jonathan Blackburn and William Levi.
Goldman Sachs is serving as EA’s financial advisor on the deal and JP Morgan Securities is serving as financial advisor to the consortium.
The deal is expected to close in Q1 FY27, subject to regulatory approvals and approval by EA stockholders. Upon completion of the transaction, EA will remain headquartered in Redwood City, California and continue to be led by Andrew Wilson, who has been its CEO since 2013.
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