EA Stock Surges on $55 Billion Private Takeover Deal
Investor consortium including PIF and Silver Lake to acquire the video game giant for $210 per share.
Electronic Arts (NASDAQ: EA), a titan in the video game industry, has agreed to a that will see the company taken private by an investor consortium. The group, which includes Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity Partners, will purchase all outstanding shares of EA for $210 each in an all-cash transaction.
The news sent EA's stock soaring, with shares jumping 4.5% to $202.05 in recent trading. The acquisition price of $210 per share represents a significant 25% premium over the company's unaffected share price as of September 25, 2025. This move is part of a larger trend of that has helped lift the broader S&P 500 index.
Under the terms of the agreement, EA will continue to be led by its current Chief Executive Officer, Andrew Wilson, and will maintain its headquarters in Redwood City, California. The deal, which is expected to close in the first quarter of fiscal year 2027, will result in EA's common stock being delisted from public markets. The company stated that the transaction will accelerate its strategic vision and foster innovation and growth in the entertainment sector.
Despite the positive market reaction for EA's stock, some Wall Street analysts have downgraded the stock to a "neutral" rating following the announcement. This is a common move when a company is set to be acquired, as the upside potential for the stock is now effectively capped at the acquisition price. The deal highlights the increasing interest of large institutional investors, including sovereign wealth funds like PIF, in the lucrative and rapidly growing video game market.