Electronic Arts (NASDAQ: EA) surged past its 52-week high on Monday after announcing it is being acquired in a $55 billion all-cash deal.
A consortium led by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners.
The investor group will buy 100% of EA, with PIF rolling over its existing 9.9% stake, in a record all-cash sponsor take-private deal.
EA stockholders will receive $210 per share, representing a 25% premium to the company’s closing price of $168.50 on September 25, 2025.
Also Read: Electronic Arts To Let Go 6% Employees To Cut Costs, Pare Real Estate Presence
Electronic Arts (EA) is known for creating, publishing, and distributing interactive digital entertainment, including popular video game franchises like EA Sports FC (formerly FIFA), Madden NFL, Apex Legends, The Sims, Battlefield, and Need for Speed.
EA develops games for PCs, consoles, and mobile devices, operating major studios and distributing titles on its own digital platform, the EA App.
Transaction Details
The transaction represents the largest all-cash sponsor take-private investment in history, the company said in its press release.
The transaction aims to accelerate EA’s innovation and expand its global reach.
Leaders from PIF, Silver Lake, and Affinity Partners pointed to EA’s strong growth trajectory, global fan base, and ability to blend physical and digital entertainment as reasons for their investment.
The board unanimously approved the deal. Once completed, EA will remain headquartered in Redwood City, California, with Wilson continuing as CEO.
The transaction is likely to close in the second quarter of fiscal 2026, pending regulatory and shareholder approval.
EA said the deal will be financed with roughly $36 billion in equity from the consortium and $20 billion in debt financing committed by JPMorgan Chase. EA’s common stock will be delisted upon the completion of the deal.
Last Friday, Electronic Arts’ shares rose after reports indicated that the company is close to finalizing a $50 billion go-private deal, marking a record leveraged buyout. The Wall Street Journal report cited the deal would be backed by Silver Lake and Saudi Arabia’s Public Investment Fund.
EA stock gained over 32% year-to-date, topping the adjusted EPS and revenue estimates in at least the last three quarters.
EA Price Action: Electronic Arts shares were up 5.12% at $203.25 at the time of publication on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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