Electronic Arts Shareholders Approve Landmark Take-Private Deal

Shareholders of video game publisher Electronic Arts have granted final approval for a proposed acquisition that would return the company to private ownership. Valued at nearly $55 billion, this transaction, spearheaded by a consortium of investors, is poised to become the largest going-private deal in the gaming industry's history. The focus now shifts squarely to the feasibility of completing the complex process by the targeted deadline in early 2027.

A buying group led by Saudi Arabia's Public Investment Fund (PIF) has presented an all-cash offer of $210.00 per share. The consortium's composition sees the PIF holding a dominant stake, with additional participation from private equity firm Silver Lake and Affinity Partners, an investment fund led by Jared Kushner. The parties have announced an expected closing date within the first quarter of 2027.

Deal Highlights:
* Offer Price: $210.00 per share (cash)
* Enterprise Valuation: Approximately $55 billion
* Lead Investor: Public Investment Fund (PIF), set to acquire roughly 93.4% of shares
* Additional Consortium Members: Silver Lake and Affinity Partners
* Projected Completion: Q1 2027
* Dividend Payment: A dividend of $0.19 per share was distributed to shareholders today, December 23, 2025.

Market Pricing Reflects Deal Uncertainties

Despite trading close to its annual peak, EA's stock continues to change hands at a slight discount to the proposed acquisition price. This market behavior primarily accounts for two critical factors. First, the extended timeline until the anticipated closing leaves room for prolonged regulatory reviews and procedural formalities. Second, the company's underlying operational performance remains a variable for investors to consider.

On the operational front, Electronic Arts reported third-quarter 2025 revenue of $1.883 billion, falling short of elevated market expectations. Its adjusted earnings per share for the period came in at $1.11. Consequently, analysts see limited potential for share price appreciation independent of the takeover bid. The consensus price target aggregated by TipRanks stands at $203.63, reflecting almost no premium above recent trading levels.

Should investors sell immediately? Or is it worth buying Electronic Arts?

Recent insider trading activity has also drawn attention. Over the past 90 days, executives and insiders sold a total of 141,169 shares worth approximately $28.24 million. This included a sale of 5,000 shares by CEO Andrew Wilson on November 17. While such sales are not conclusive evidence of a specific motive, they indicate a mix of divestment and holding patterns among insiders during this period.

From a technical analysis perspective, the stock closed its most recent session at €173.30, just below its 52-week high. It currently shows a high Relative Strength Index (RSI) reading of 86.7, signaling intense short-term buying pressure.

The Path Forward and Investor Considerations

The immediate roadmap is well-defined. Successful completion now hinges predominantly on securing the necessary regulatory approvals and efficiently executing the transaction's final steps. If the deal closes as planned in Q1 2027, shareholders will receive the agreed-upon cash consideration. Any significant delays in the review process would likely cause the market to maintain a persistent gap between the trading price and the offer price.

In the interim, the dividend payment provides limited liquidity for investors but does not alter the core investment thesis. For the foreseeable future, the stock's valuation is more closely tethered to the progression of the takeover deal than to the company's short-term fundamental business results.