REDWOOD CITY, Calif.--(BUSINESS WIRE)--
Electronic Arts Inc. (NASDAQ: ERTS) and Relational Investors LLC, a
major EA shareholder, today announced a mutual cooperation agreement
giving Relational an option to appoint its Principal and Co-Founder,
Ralph Whitworth, to EA's Board of Directors.
"Electronic Arts and Relational have engaged in a series of discussions
about EA's significant progress in improving its business and its
prospects for continued growth and improvement," said John Riccitiello,
Chief Executive Officer of Electronic Arts. "This agreement signals
Relational's confidence as we transform EA from a packaged goods company
to a fully integrated digital entertainment company."
"EA's performance over the last several months and the rapid growth of
its digital business demonstrate the fundamental strength of its
business franchise and management's ability to extend the Company's
industry leadership," said Ralph Whitworth, Principal and Co-Founder of
Relational. "We are pleased to be closely engaged with EA's management
team and we are confident in the Company's growth potential."
The mutual cooperation agreement provides Relational with an option to
appoint Ralph Whitworth to the Electronic Arts Board of Directors, and
its Executive Compensation and Leadership Committee, at Relational's
request between September 15, 2011 and May 1, 2012. Should Mr. Whitworth
join the Company's Board, Electronic Arts agrees to re-nominate him at
the Company's 2012 Annual Meeting of Shareholders for a customary
one-year term.
Relational, a $6.4 billion private investment fund, began investing in
Electronic Arts shares in early 2011 and, as of the quarter ending March
31st, owned approximately 1.5% of Electronic Arts' common stock. The
agreement is detailed in an exhibit to the Form 8-K that the Company
filed today with the Securities and Exchange Commission.
About Electronic Arts
Electronic Arts (NASDAQ:ERTS) is a global leader in digital interactive
entertainment. The Company's game franchises are offered as both
packaged goods products and online services delivered through
Internet-connected consoles, personal computers, mobile phones and
tablets. EA has more than 100 million registered players and operates in
75 countries. In fiscal 2011, EA posted GAAP net revenue of $3.6
billion. Headquartered in Redwood City, California, EA is recognized for
critically acclaimed, high-quality blockbuster franchises such as The
Sims™, Madden NFL, FIFA Soccer, Need for Speed, Battlefield, and Mass
Effect. More information about EA is available at http://info.ea.com.
Electronic Arts Inc.
Peter Ausnit, 650-628-7327
Vice
President, Investor Relations
pausnit@ea.com
Jeff
Brown, 650-628-7922
Vice President, Corporate Communications
jbrown@ea.com
Source: Electronic Arts Inc.
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