Electronic Arts (NASDAQ: EA, BATS-EU: EA) surprised the market early Monday with the news that it will be acquired in a blockbuster deal valued at $55 billion, marking one of the largest tech takeovers in recent history. The agreement has the Public Investment Fund of Saudi Arabia, Silver Lake, and Affinity Partners joining forces to buy out all outstanding shares of the video game giant in an all-cash deal, giving shareholders $210 per share. That’s a payday few in gaming saw coming, and it signals some big changes ahead for the industry.
The deal lands just days after shares of EA surged nearly 15% at Friday’s close, following reports from the Wall Street Journal that discussions were in the final stages. Today, trading in EA shares was temporarily halted, with buying interest continuing to push the stock price about 6% higher in premarket activity at the open. If you’re keeping score, the Friday close of $193.35 wasn’t far from the deal price, but the all-cash premium means long-term holders are walking away with a sizable return compared to the company’s price trajectory for most of the year.
This acquisition isn’t just about a headline number, though $55 billion certainly will get anyone’s attention. It comes at a time when global consolidation in gaming is accelerating. Major investment groups and sovereign wealth funds are snapping up assets ranging from developers of blockbuster franchises to esports companies. For the Public Investment Fund, which has been active in strategic technology and media investments, this move follows its ongoing pattern of securing assets that have broad influence and mass appeal, especially among younger global audiences. The entry of Silver Lake and Affinity as part of the buyer group adds even greater financial heft and signals confidence that Electronic Arts’s core portfolio, including franchises like FIFA, Madden, and Apex Legends, can drive substantial returns even outside the public markets.
For shareholders, the $210 per share buyout price represents a robust premium to the shares’ closing prices for much of 2025. The timing saw a rapid run-up, catalyzed by leaked merger news, but the final cash exit means investors avoid any speculation about the stock’s future path if the deal were to have fallen apart. As with many recent tech take-privates, the parties are wagering that Electronic Arts will find more freedom to make long-term bets and structural changes without the quarterly scrutiny and pressure that come with being a public company.
Trading halts like the one imposed Monday on EA are standard practice when news of this magnitude breaks, letting investors digest the details before trading resumes. While the market response to merger rumors can often move a stock price well before an official announcement, the final agreed price in this case leaves a decent gap for existing holders between last week’s pre-rumor levels and the new deal terms. That difference is where institutional investors and retail holders alike will see the benefit, especially after a period when video game stocks have underperformed other growth sectors.
The involvement of the Public Investment Fund brings fresh scrutiny and likely some debate about the future direction of one of gaming’s flagship companies. Nonetheless, private capital has been a growing part of the technology and entertainment landscape. For Electronic Arts, moving out from under the quarterly reporting microscope could pave the way for bolder game development, more experimentation, and a chance to rethink the company’s biggest franchises without as much risk of investor backlash.
