Electronic Arts Is Going Private. Is It Too Late to Buy EA Stock Here?

Electronic Arts (EA) is in the spotlight Monday after agreeing to be taken private in a historic $55 billion leveraged buyout, marking a transformative moment for the gaming industry.

The consortium of buyers led by the Saudi Arabia Public Investment Fund (PIF) will acquire the video game giant behind notable titles like FC and Battlefield at $210 per share. 

The transaction – which includes support from Affinity Partners and Silver Lake Partners as well – represents a 25% premium over the Sept. 25 closing price of roughly $168. 

Is Going Private the Right Move for Electronic Arts?

The announced transaction includes about $36 billion in equity investment and $20 billion in debt financing from JPMorgan Chase (JPM), making it the largest leveraged buyout in history.

Under private ownership, EA will have more flexibility to focus on long-term strategic initiatives without the pressures of quarterly earnings reports and public market scrutiny. 

Electronic Arts’ strong sports gaming portfolio and live services revenue, which now accounts for nearly 75% of net bookings, provides a stable foundation for future growth.

However, the deal’s enormous size and involvement of foreign investors could attract extended regulatory scrutiny, potentially complicating the path to closure expected in Q1 of fiscal 2027. 

Is There Any Upside Left in EA Stock?

For investors considering loading up on EA stock at current levels, the risk-reward proposition appears rather limited. 

Electronic Arts’ shares have already jumped more than 21% since deal rumors emerged, trading close to the takeout price of $210 at the time of writing.  

While some analysts question whether the offer fully reflects EA’s potential, particularly given its upcoming game releases, the lengthy closing timeline and regulatory hurdles present significant risks.

For existing shareholders, therefore, accepting the certain 25% premium appears prudent instead of speculating on a higher competing bid, especially given the firm’s recent growth challenges.

Wall Street’s Stance on Electronic Arts Shares

Investors should note that the mean target on EA shares also suggests the post-announcement rally is an opportunity to pull out of the gaming stock. 

Wall Street currently has a consensus “Moderate Buy” rating on Electronic Arts shares with a mean target of about $174 indicating potential downside of some 12% from here.