Electronic Arts Inc. (EA, Financial) has announced a significant step in its capital allocation strategy by entering into an accelerated share repurchase agreement (ASR Agreement) with Goldman Sachs & Co. LLC. This agreement, dated February 5, 2025, involves the repurchase of $1.0 billion worth of EA's common stock, marking a substantial move within its previously declared $5 billion stock repurchase program.
Under the terms of the ASR Agreement, EA will pay the repurchase price on February 6, 2025, and in return, will receive common stock valued at 80% of the repurchase price, based on the closing price of the stock on February 5, 2025. The final number of shares repurchased will be determined by the volume-weighted average price of EA's common stock during the agreement's term, adjusted for a discount and other conditions outlined in the agreement.
The completion of this ASR Agreement is anticipated by the end of EA's first fiscal quarter of fiscal year 2026. This strategic financial maneuver underscores EA's commitment to enhancing shareholder value and optimizing its capital structure.
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