Street View: EA to go private in $55 billion buyout, marking new era for gaming giant

Electronic Arts said on Monday it will be taken private in a landmark $55 billion deal led by a consortium comprising private equity firm Silver Lake, Saudi Arabia's Public Investment Fund and Affinity Partners

Under the deal, EA shareholders will receive $210 per share in cash, implying a premium of 25% as of the closing share price on September 25

The transaction is expected to close in the Q1 of FY27

EA UNLOCKS $55 BLN EXPANSION PACK

Jefferies ("hold", PT: $210) says "We see limited obstacles to closing or likelihood of additional bids"

TD Cowen ("buy", PT: $183) says $55 billion all-cash deal "marks the largest LBO in history," and questioned the timing, noting, "It is still unclear to us why EA would agree to be acquired right before a very promising Battlefield launch"

Dan Coatsworth, investment analyst at AJ Bell, said the change of ownership gives EA access to deep-pocketed backers, potentially enabling acquisitions though antitrust scrutiny could follow

Adds, "Removing EA from the spotlight of public markets could help management focus on rightsizing the business in a more challenging environment"

Morningstar said EA shareholders are getting a great deal and the $210 per share offer is higher than what the co's current performance would normally justify