EA stock price has surged 19% higher on the news.
Electronic Arts (NASDAQ: EA), better known as EA, is being acquired by a consortium of investors for $55 billion that will take the video game maker private.
The consortium consists of private equity firms Silver Lake and Affinity Partners, which is owned by President Donald Trump’s son-in-law Jared Kushner, and the Public Investment Fund (PIF), the Saudi Arabian sovereign wealth fund.
The Wall Street Journal broke the news last Friday that the consortium was in advanced talks to buy EA.
That became official on Monday when EA made the announcement.
The consortium will acquire 100% of EA, which makes the popular Madden NFL, EA Sports FC, Apex Legends, and Battlefield, to name a few.
As part of the deal, EA shareholders will receive $210 per share in cash. The deal constitutes an equity investment of $36 billion along with about $20 billion of debt financing, with PIF rolling over its existing 9.9% stake in EA.
The $210 per share price marks a 25% premium over EA’s share price of $168.32 at the close of the market on September 25. It also marked a 17% premium over the then all-time high of $179.01, which occurred on August 14, 2025.
After the WSJ report came out on Friday, the stock price surged about 14% to $193 per share. On Monday it rose another 5% when the deal was made official.
EA stock is up about 29% year-to-date.
Largest deal ever
The deal is being hailed as the largest all-cash deal to take a company private in history, according to the consortium.
“Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work,” Andrew Wilson, chairman & CEO of Electronic Arts, said. “Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities.”
The transaction is expected to close in EA’s fiscal first quarter of 2027, which in actual calendar terms is the second quarter of 2026. It is subject to regulatory and shareholder approvals. Once the deal closes, it will no longer be a public company and trade on any exchanges.
Wilson will remain the CEO and the company will continue to be based in Redwood City, Calif.
Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future. I’ve admired their ability to create iconic, lasting experiences, and as someone who grew up playing their games — and now enjoys them with his kids — I couldn’t be more excited about what’s ahead,” Kushner, CEO of Affinity Partners, said.
The stock price shot up because investors know that they will get that premium payout of $210 per share. Right now it is trading at around $203 per share, so there’s still some potential upside for investors.
