Electronic Arts CAO equity converted in $210 deal
Electronic Arts Inc. Chief Accounting Officer Eric Charles Kelly reported issuer-directed dispositions in connection with the Oak-Eagle merger.
Rhea-AI Filing Summary
Electronic Arts Inc. Chief Accounting Officer Eric Charles Kelly reported issuer-directed dispositions in connection with the Oak-Eagle merger. At the August 4, 2026 Effective Time, his 8,739 common shares were cancelled and converted into the right to receive $210.00 per share in cash. His unvested restricted stock units and performance-based stock units were cancelled and converted into restricted cash awards based on the same $210.00 per-share Merger Consideration, generally vesting on their original schedules.
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Insights
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Insider Trade Summary
Disposition: 21,914 shares
Disposition
7 txns
Insider
Kelly Eric Charles
Role
Chief Accounting Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Disposition | Restricted Stock Units F2 | 1,454 | -- | -- |
| Disposition | Restricted Stock Units F2 | 2,426 | -- | -- |
| Disposition | Restricted Stock Units F2 | 5,415 | -- | -- |
| Disposition | Performance-based Stock Units F3 | 1,454 | -- | -- |
| Disposition | Performance-based Stock Units F3 | 1,213 | -- | -- |
| Disposition | Performance-based Stock Units F3 | 1,213 | -- | -- |
| Disposition | Common Stock F1 | 8,739 | $210.00 | $1.84M |
Holdings After Transaction:
Restricted Stock Units — 0 contracts (Direct);
Performance-based Stock Units — 0 contracts (Direct);
Common Stock — 0 shares (Direct)
Footnotes (3)
- F1. On August 4, 2026, pursuant to the terms of that certain Agreement and Plan of Merger (the "Merger Agreement"), dated as of September 28, 2025, by and among Electronic Arts Inc., a Delaware corporation (the "Issuer"), Oak-Eagle AcquireCo, Inc., a Delaware corporation ("Parent"), and Oak-Eagle MergerCo, Inc., a Delaware corporation and wholly owned subsidiary of Parent ("Merger Sub"), Merger Sub merged with and into the Issuer (the "Merger"), with the Issuer surviving the Merger as a wholly owned subsidiary of Parent. At the effective time of the Merger (the "Effective Time"), each share of Issuer common stock held by the reporting person was cancelled and converted into the right to receive $210.00 in cash (the "Merger Consideration").
- F2. At the Effective Time, pursuant to the Merger Agreement, each employee's unvested restricted stock units ("RSUs") were cancelled and converted into restricted cash awards equal to $210.00 multiplied by the number of shares subject to the unvested RSUs, less applicable withholding taxes and without interest, and will generally vest and be paid on the same schedule as the original RSUs.
- F3. At the Effective Time, pursuant to the Merger Agreement, each employee's unvested performance-based stock units were cancelled and converted into restricted cash awards representing the right to receive, without interest and less applicable withholding taxes, cash equal to the Merger Consideration of $210.00 per share subject to the award. For awards with an incomplete performance period or for which performance had not been certified immediately prior to the Effective Time, the number of shares used to calculate the cash amount was determined based on the greater of target performance and actual performance measured through the latest practicable date prior to the Effective Time.
Key Figures
Common shares cancelled: 8739.0000 shares
Merger Consideration per share: 210.00 per share
RSUs tranche cancelled: 1454.0000 units
+4 more
7 metrics
Common shares cancelled
8739.0000 shares
EA common stock held by Eric Charles Kelly cancelled at the August 4, 2026 Effective Time
Merger Consideration per share
210.00 per share
Cash paid for each EA common share cancelled in the merger
RSUs tranche cancelled
1454.0000 units
Unvested restricted stock units converted into restricted cash awards at $210.00 per underlying share
RSUs tranche cancelled
2426.0000 units
Additional unvested RSUs converted into restricted cash awards under the Merger Agreement
RSUs tranche cancelled
5415.0000 units
Further unvested RSUs cancelled and converted into restricted cash awards
Performance units cancelled
1454.0000 units
Performance-based stock units converted into restricted cash awards at $210.00 per share
Performance units cancelled
1213.0000 units
Tranche of performance-based stock units cancelled and cash-settled based on Merger Consideration
Key Terms
Agreement and Plan of Merger, Merger Consideration, restricted cash awards, performance-based stock units, +1 more
5 terms
Agreement and Plan of Merger regulatory
"pursuant to the terms of that certain Agreement and Plan of Merger (the "Merger Agreement")"
An Agreement and Plan of Merger is a formal document where two companies agree to combine into one, outlining how the process will happen. It’s like a step-by-step plan for merging, and it matters because it shows both sides have agreed on the details before the official transition takes place.
Merger Consideration financial
"converted into the right to receive $210.00 in cash (the "Merger Consideration")"
Merger consideration is the total payment a company or buyer offers to shareholders of a target company in exchange for combining the two businesses, and can include cash, shares in the surviving company, debt assumption, or a mix of these. Investors care because the form and amount affect the deal’s value, tax consequences, immediate cash received versus future ownership, and the risk and upside of holding new shares — similar to choosing between cash now or stock that could grow later.
restricted cash awards financial
"unvested restricted stock units ("RSUs") were cancelled and converted into restricted cash awards"
performance-based stock units financial
"each employee's unvested performance-based stock units were cancelled and converted"
Performance-based stock units are company promises to deliver shares or cash to employees or executives only if the business hits specific financial or operational goals over a set period. Like a bonus that only pays out when certain milestones are reached, they link pay to company performance and matter to investors because they can dilute the share count, affect reported earnings when they vest, and signal how management is being incentivized.
withholding taxes financial
"cash awards equal to $210.00 multiplied by the number of shares ... less applicable withholding taxes"
Withholding taxes are amounts a payer or government takes out of payments — such as wages, interest, or dividends — before the recipient gets the money, functioning like a cashier keeping part of a bill to pay taxes on your behalf. For investors this matters because it reduces the cash they actually receive, affects net returns and yield calculations, and may require additional paperwork or treaty claims to recover or offset the withheld amount against final tax bills.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did EA insider Eric Charles Kelly report on his Form 4?
Eric Charles Kelly, EA’s Chief Accounting Officer, reported issuer-directed dispositions tied to the Oak-Eagle merger. His common shares were cancelled for $210.00 per share in cash, and his unvested equity awards were converted into restricted cash awards based on the same Merger Consideration.
How were EA restricted stock units held by Eric Charles Kelly treated in the merger?
At the Effective Time, each unvested EA restricted stock unit held by Eric Charles Kelly was cancelled and converted into a restricted cash award equal to $210.00 per underlying share, less applicable withholding taxes, generally vesting and paying on the same schedule as the original RSUs.
What happened to Eric Charles Kelly’s EA performance-based stock units in the merger?
His unvested performance-based stock units were cancelled and converted into restricted cash awards equal to $210.00 per share, less taxes. For awards without certified performance, the share number was based on the greater of target performance or actual performance measured through the latest practicable date.
Were Eric Charles Kelly’s EA transactions reported under a Rule 10b5-1 trading plan?
These EA insider transactions were not reported as made under a Rule 10b5-1 trading plan. The Rule 10b5-1 checkbox was not marked, and the explanatory footnotes describe treatment under the merger agreement rather than any pre-arranged trading program.
AI-generated analysis. How Rhea-AI works. Not financial advice.
