By Saudi Arabia

Copyright indiatimes

EA stock jumped from $168.00 to over $210 per share in pre-market trading. This represents a 25% premium for shareholders compared to the stock’s closing price on September 25, 2025.

Electronic Arts (EA), the maker of famous video games like Madden NFL and The Sims, is set to go private in a huge $55 billion deal. This deal is one of the biggest private takeovers ever in the gaming world.The group buying EA includes Saudi Arabia’s Public Investment Fund (PIF), the private equity firm Silver Lake Partners, and Affinity Partners, an investment firm led by Jared Kushner, who is President Donald Trump’s son-in-law. They will buy all EA shares for $210 each. This price is 25% higher than EA’s recent stock price and higher than its highest-ever share price. EA shareholders will get cash for their shares, ending EA’s 36 years as a public company.The deal is planned to finish in the first quarter of 2027, after getting approvals from regulators and EA’s shareholders. Once complete, EA will no longer be listed on the stock market. The company will keep its headquarters in Redwood City, California, and its current CEO, Andrew Wilson, will stay in charge.Silver Lake Partners praised EA’s strong leadership and growth under CEO Wilson. They see big potential for more innovation and expansion. The PIF aims to boost Saudi Arabia’s economy by investing heavily in video games. It already holds stakes in major gaming companies like Take-Two and Nintendo.The deal is funded by a mix of cash and debt. The investors plan to contribute equity, and JPMorgan Chase Bank will provide about $20 billion in debt financing. The PIF’s existing $36 billion investment in EA will also play a role in the financing.Live EventsEA’s revenue has been steady over recent years, around $7.4 to $7.6 billion annually. Going private will let EA focus more on long-term growth and innovation without the pressure from public shareholders. The gaming market is getting competitive with big moves like Microsoft’s $69 billion purchase of Activision Blizzard.The gaming company is preparing for the launch of Battlefield 6 on October 10, which is expected to boost its revenues. EA’s popular franchises like Madden and The Sims remain highly valuable despite recent industry challenges. For PIF, this acquisition strengthens its gaming portfolio under the Savvy Gaming Group. The investment also highlights increasing interest from sovereign wealth funds and private equity firms in major gaming companies.EA will remain headquartered in Redwood City, California. CEO Andrew Wilson will continue to lead the company, ensuring stability during the transition to private ownership. The private structure may give EA more freedom to innovate and expand its game portfolio.Although privatization sometimes means layoffs, EA has not announced any plans for cuts after trimming 5% of staff earlier in 2025. The acquisition gives EA the chance to change its business, improve efficiency, and create new experiences for millions of gamers around the world.This significant buyout highlights Saudi Arabia’s ambition to expand beyond oil by investing in entertainment and technology sectors globally.This deal is seen as a major moment for EA and the gaming industry, signaling big changes ahead for the company and its fans.EA’s stock jumped after the announcementElectronic Arts (EA) stock jumped significantly after the announcement of the $55 billion takeover. On September 26, 2025, EA shares closed at about $193.35, up 14.87% from the previous day. The stock price rose by roughly 25% above the unaffected price of $168.32 before the deal news. On the day following the announcement, EA traded around $202.87, marking a nearly 5% gain from the prior close. What the deal means for shareholders EA shareholders will get $210 per share in cash. This is a 25% premium over the stock’s closing price on September 25, 2025. The deal is structured with $36 billion in equity and $20 billion in debt, mostly financed by JPMorgan Chase. PIF, which already owns 9.9% of EA, will roll over its existing shares into the new private ownership structure. The acquisition is expected to close in the first quarter of fiscal 2027, pending regulatory and shareholder approvals.Add as a Reliable and Trusted News Source Add Now!
The $55 billion takeover is a landmark event for the gaming sector. Analysts expect it to set a precedent for future investments in top gaming companies. As the deal progresses, both investors and gamers will watch closely to see how it affects EA’s operations and game development plans.(You can now subscribe to our Economic Times WhatsApp channel)

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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onElectronic Arts $55 bn takeover EA stock jumpsEA’s stock jumps after $55 billion acquisitionElectronic ArtsJared KushnerElectronic Arts stockelectronic arts $55 billion takeoverea stock(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates….moreless

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