Electronic Arts near roughly $50B deal to go private: WSJ

Electronic Arts near roughly $50B deal to go private: WSJ

Electronic Arts Inc. (NASDAQ: EA) is reportedly close to a deal that could take the video game giant private, according to a report from The Wall Street Journal. The proposed transaction, valued at approximately $50 billion, would see a private equity firm acquire the company. The deal, if finalized, would significantly impact the gaming industry and investors holding Electronic Arts stock.

The report suggests that the private equity firm is in advanced talks with Electronic Arts' management and is considering a leveraged buyout (LBO) structure. The exact terms of the deal, including the purchase price and the financing details, remain confidential. However, the reported valuation aligns with Electronic Arts' current market capitalization, which stands at around $42.12 billion.

Electronic Arts has been a subject of interest among institutional investors and analysts alike. In the second quarter of 2025, Public Employees Retirement System of Ohio reduced its holdings in Electronic Arts by 1.9%, selling 1,852 shares. Despite this reduction, institutional investors continue to hold a significant portion of the company's stock, with 90.23% of shares owned by such investors .

Recent insider activity has also been notable. EVP Jacob J. Schatz sold 1,500 shares on July 15, 2025, and insider Laura Miele sold 2,500 shares on August 1, 2025. These sales represent a total of 30,800 shares sold by insiders in the last 90 days, indicating a trend of insider selling .

The potential deal comes amidst a period of positive analyst sentiment. Analysts have set price targets ranging from $160 to $210, with a consensus rating of "Moderate Buy" . The company has also announced a quarterly dividend of $0.19 per share, resulting in an annualized dividend yield of 0.5% and a payout ratio of 19.05% .

The proposed acquisition would mark a significant shift for Electronic Arts, which has been a publicly traded company since its initial public offering in 1993. The move to private ownership could provide the company with greater flexibility in strategic decisions and potentially lead to increased innovation and growth opportunities.

Investors and financial professionals should closely monitor the developments surrounding this potential deal. The outcome could have significant implications for the gaming industry and the stock market. Further details on the deal are expected to be disclosed in the coming weeks.