Key Stats for Electronic Arts Stock
- Price Change for $EA stock: 15%
- Current Share Price: $193
- 52-Week High: $197
- $EA Stock Price Target: $176
What Happened?
Electronic Arts (EA) is being taken private in a historic $55 billion deal. A consortium led by Saudi Arabia’s Public Investment Fund (PIF), private equity giant Silver Lake, and Jared Kushner’s Affinity Partners will acquire the gaming company for $210 per share in cash.
This represents a 25% premium over EA’s closing price on September 25, the last day before deal rumors surfaced. The transaction marks the largest leveraged buyout in Wall Street history, surpassing famous deals like the 2007 TXU Energy buyout.
The timing is significant for EA. The company is heavily banking on its sports franchises, such as Madden and FIFA, along with action games like Battlefield, to navigate a challenging period in gaming where players are becoming more selective about their purchases.
The much-anticipated “Battlefield 6” launch is on the horizon, and this deal gives EA financial backing to invest aggressively in development and innovation.
Under the agreement, PIF will roll over its existing 9.9% stake in EA rather than cashing out.
The deal includes $36 billion in equity from the consortium members and $20 billion in debt financing from JPMorgan Chase. EA will remain headquartered in California, with Andrew Wilson continuing as CEO.
See analysts’ growth forecasts and price targets for Electronic Arts stock (It’s free!) >>>
What the Market Is Telling Us About EA Stock
The market’s positive reaction shows investors believe this is a fair price for EA shareholders. The 25% premium provides immediate certainty, especially for a company navigating industry headwinds.
The buyers clearly see long-term value in EA’s iconic franchises.
PIF, Silver Lake, and Affinity Partners wouldn’t commit this much capital unless they believed EA’s sports and shooter games could generate strong returns in the years ahead.
The deal structure also reveals confidence as PIF is keeping its stake rather than selling, Silver Lake is making one of its largest bets ever, and the group is willing to take on $20 billion in debt. That’s a strong vote of confidence in EA’s future, even as the gaming industry faces challenges.
For shareholders, the $ 210-per-share offer provides a clean exit at a solid premium. The deal is expected to close in early 2027, pending regulatory approval and shareholder vote.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
