M&A
confidence high
sentiment neutral
materiality 0.65
EA supplements merger proxy with financial forecasts and DCF details in response to shareholder lawsuits
ELECTRONIC ARTS INC.
- Three shareholder lawsuits filed in NY and CA allege omissions in proxy for $18B+ go-private acquisition by PIF/Silver Lake/Affinity.
- Added financial forecasts: Net Bookings $7.85B-$11.25B, Adjusted EBITDA $2.76B-$4.50B for FY2026-FY2031; cash taxes and working capital also shown.
- Goldman Sachs DCF: discount rate 7.5%-9.5%, perpetuity growth 2%-3%, yields present value range of $157-$236 per share.
- Premia paid analysis for all-cash deals ≥$5B: 20%-51% premium range; implied equity value $203-$255 per share.
- Current senior management expected to continue leading surviving corporation; no new exec compensation arrangements yet.