Record LBO

Hi ZipLawyer! Here's all the news you need to know today.

💸 EA's record LBO
🍿 Trump (new) tariffs
💊 AstraZeneca's US listing
🧓 Linlaters lead on pension deal
📺 HSFK, BCLP lead on TV deal

EA's record LBO

Biggest LBO ever just dropped today. But wait… what even is a LBO? Don’t worry, you’re not the only one scratching your head. Let’s break it down.

What is a Leveraged Buyout (LBO)?

Say you want to buy a farm. However, you don’t have the cash to buy the whole thing, so you put down a little deposit (your equity) and borrow the rest (the debt).

But here’s the trick: you use the farm’s own crops, milk, and eggs (the company’s cash flow) to repay the loan over time.

If the farm is fertile and keeps producing, you’ll eventually own it outright, having only invested a small amount yourself. But it is risky! If there’s a drought (a downturn in business), suddenly you’re staring at a mountain of debt with no harvest to pay it off.

So why are we talking LBOs?

Electronic Arts (EA) agreed to sell itself in a $55bn leveraged buyout, the largest in history. The deal — at $210 per share — brings in Silver Lake Management, Saudi Arabia’s Public Investment Fund, and Jared Kushner’s Affinity Partners.

EA, maker of The Sims and EA Sports FC, is selling amid sluggish growth in the $178bn gaming industry. For the buyers, it’s a massive bet that gaming IP will stay valuable even as the industry’s growth slows.

⚖️Wachtell Lipton is advising EA, Kirkland & Ellis is advising the consortium of firms buying EA.

News Roundup

🇺🇸 Donald Trump said he’ll introduce new tariffs to boost the domestic film and furniture industries. On social media, he threatened “substantial tariffs” on countries that don’t make their furniture in the US and repeated his plan for a 100% tariff on foreign films. The details remain fuzzy, but the message is clear: Trump is doubling down on protectionism, using tariffs not just for trade but to reshape cultural and consumer industries at home.

💶 The European Central Bank’s chief economist, Philip Lane, said he doesn’t see big risks of inflation spiking or collapsing. Speaking in Frankfurt, he suggested interest rates may stay put for now. “It doesn’t look like we’re going back to the pre-pandemic equilibrium of very low inflation,” he said. Translation: the ECB feels comfortable holding steady, even as markets debate whether Europe needs rate cuts to support sluggish growth.

💊 AstraZeneca will directly list shares in New York, though its main listing stays in London. Reports suggested it considered moving fully to America due to frustrations with the UK’s regulatory regime. Meanwhile, GSK boss Emma Walmsley said she’ll step down at the end of the year after struggles at the British drugmaker. Together, the announcements highlight how global pharma giants are rethinking where they’re anchored — and how London risks losing clout as a financial hub.

Law Firm News

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