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EA Goes Private In Largest Leveraged Buyout In History At $ 55 Billion
['Ryan Parreno']
Gameranx
As explained by GameSpot, they have finalized a leveraged buyout to the tune of $ 55 billion.
This is the largest leveraged buyout in the history of business, although Microsoft still paid more to acquire Activision at $ 75 billion.
The PIF takes a large majority of EA’s shares, and the deal also includes an agreement to pull EA from the stock market.
However, a leveraged buyout involves borrowing money to complete a sale.
While we don’t know exactly why EA chose this route, it suggests that they were trying to avoid an even worse fate in their original position.