:max_bytes(150000):strip_icc()/GettyImages-1973230322-38aff9736e6e41ea9386d725b0f99d21.jpg "Electronic Arts Is Going Private In a Billion Deal")
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Key Takeaways
- Electronic Arts is being bought by a consortium of private-equity firms for $55 billion.
- The all-cash deal gives EA investors $210 per share. Electronic Arts shares soared to all-time highs last week on indications a purchase was in the works.
One of the biggest video-game companies around is going private.
Shares of Electronic Arts (EA) jumped in morning trading after the video game maker agreed to be purchased by a consortium for $55 billion in cash. The company said the buyers, the Saudi Public Investment Fund and private equity firms Silver Lake and Jared Kushner’s Affinity Partners, will pay $210 per share, an 8.6% premium from Friday’s closing price. The transaction is expected to close in the spring.
Shares of EA had been rising lately following a report last week that the company would be sold, which sent shares up nearly 15% on Friday. The stock was recently up nearly 5% to around $203.
The deal takes another big video-game stock out of the arcade known as the stock market. Microsoft (MSFT) acquired Activision Blizzard in late 2023 after overcoming regulatory hurdles. Take-Two Interactive (TTWO), known for the “Grand Theft Auto” series, remains public; its shares were up a big less than 1% in recent trading.
Why This Matters to Video Game Investors
This is the largest private-equity backed buyout in history and a big bet on the gaming industry. The $55 billion deal, which includes a 25% premium for shareholders, could renew investor interest in game stocks after mixed performance in recent years.
EA said that the deal was “the largest all-cash sponsor take-private investment in history,” noting that the consortium will be “partnering closely with EA to enable the Company to move faster and unlock new opportunities on a global stage.” It added that the acquisition offers “unique possibilities for EA to blend physical and digital experiences, enhance fan engagement, and create new growth opportunities.”
Saudi Arabian investors have made notable moves in the video gaming industry in recent years.
Shares of Electronic Arts are up nearly 40% year-to-date.
