EA going private means the company is transitioning from being publicly traded on the stock market to private ownership by a specific group of investors. This means EA's shares will no longer be available for public purchase or trade, and the company will be owned privately by investors such as private equity firms and sovereign wealth funds. In EA's case, a consortium including Saudi Arabia's Public Investment Fund, the private equity firm Silver Lake, and Jared Kushner's Affinity Partners are buying the company in a $55 billion all-cash deal. Shareholders will be paid $210 per share, marking a 25% premium over the recent trading price. With EA private, it will face less public and government scrutiny, have more freedom to pursue long-term strategies without worrying about quarterly earnings reports, and will not need to satisfy public shareholders. However, reduced transparency and oversight is a potential concern. This deal is the largest leveraged buyout in Wall Street history by dollar value.
In summary, "going private" means EA will no longer be a public company traded on stock exchanges but a privately owned entity operated under the control of a few private investors. This allows it to focus more on long-term plans without public market pressures but sacrifices public market transparency and access to capital through stock offerings. This fundamental ownership and operational shift is significant for the company and its stakeholders.
