Updated 8:54 am EST to reflect the $55 billion leveraged buyout.

Video-gaming giant Electronic Arts’  (EA) year just got even better.

Shares of the video-gaming juggernaut have quietly outperformed into fall, up nearly 32% year-to-date, 33% over six months, and a superb 12% in the past month alone, before Friday’s fireworks.

For those unfamiliar, EA makes and publishes some of the biggest entertainment franchises. Founded in 1982, the Redwood City–based publisher is behind:

  • EA Sports FC (formerly FIFA)
  • Madden NFL
  • Apex Legends
  • Battlefield
  • The Sims, Star Wars Jedi, and more.

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Its popular soccer/football series alone has sold north of 325 million copies over its lifetime, making it the company’s crown jewel. The “FIFA” name ended after EA and FIFA parted ways in 2022; from 2023 onward, the series is known as EA Sports FC.

Speaking of which, just a few days ago, EA Sports FC 26 hit consoles and PC, with early access on September 19, and a full launch on September 26. Early reviews have landed around the 80 mark on Metacritic, with outlets praising on-pitch gameplay and noting live-service gripes.

Financially, EA entered FY26 with healthy trends.

EA has surpassed revenue estimates in four of the past five quarters, while beating earnings estimates in three.

Its Q1 FY26 results showed a superb $1.671 billion revenue haul, with the ‘F1’ game, Apex Legends, driving bookings to $1.30 billion, beating estimates by $70 million.

Now, the newest development is EA’s biggest yet. 

EA has entered a buyout agreement, and the stock is extending its rally in premarket trading on Monday, last seen at $203.85, up almost 6% as of 8:42 a.m. ET on Sept. 29, 2025. 

The move picks up where the stock left off Friday, when shares skyrocketed roughly 15% after the buyout rumors surfaced.

EA CFB25 Video Game

Electronic Arts

EA’s blockbuster $55 billion take-private lands days after FC 26 launch 

The EA games merger is no longer in rumor territory.

The publisher just announced that it has entered into a definitive agreement to be scooped up by a PIF, Silver Lake, and Affinity Partners consortium in an all-cash, $55 billion leveraged buyout.

EA’s Shareholders will receive a massive $210 per share in cash, representing a 25% premium to EA’s Sept. 25 close. Given the price tag, it will become the largest LBO on record and the largest all-cash sponsor take-private to date.

Coincidentally, the news drops just days after EA Sports FC 26’s global launch (early access Sept. 19; worldwide release was on Sept. 26).

For investors, the timing is remarkably striking with FC 26’s release offering early engagement signals just when EA shifts into private hands backed by deep-pocketed investors betting huge on the future of gaming.

Key terms of the EA deal:

  • Price/valuation: $210 cash per share, $55 billion enterprise value; (25% premium to Sept. 25 “unaffected” close).
  • Consortium: PIF, Silver Lake, Affinity Partners; PIF will roll its 9.9% stake.
  • Financing: $20 billion debt committed by JPMorgan ($18 billion funded at close) plus $36 billion equity from the sponsors (including the PIF rollover)
  • Scale: It’s the largest LBO on record and the largest all-cash sponsor take-private.
  • Close/approvals: Board-approved; shareholder and regulatory approvals are still pending and expected to wrap up in EA’s Q1 FY27; Also, EA will be skipping a Q&A call for its Oct. 28 earnings (release only).

What to expect ahead:

  • Shareholder vote + regulatory review are being targeted in Q1 FY27 (mid-2026).
  • Operational cadence: Watch out for FC 26 bookings/engagement as early private-owner priorities take shape effectively.

Leveraged buyouts explained: what they mean for investors

A leveraged buyout is when buyers purchase a company primarily through borrowed money, using future cash flows and assets as collateral.

Think of it as scooping up a house with a small down payment and a big mortgage; the home’s value and your paycheck support the loan. In LBOs, sponsors want to boost cash flow, pay down debt, and later exit at a profit.

Related: Morgan Stanley warns AI could sink 42-year-old software giant

Shareholders usually get a cash premium near the offer price (but are at risk if a deal breaks). 

The company often delists, running leaner to service debt, potentially selling non-core assets. Moreover, deal news for the market can efficiently lift peers on read-through, making deal-trading more volatile, while leading banks to sell risky debt to pay for the buyout.

Here are five of the biggest LBOs so far on record:

  • TXU (Energy Future Holdings), 2007: $45 billion (currently the largest classic LBO).
  • HCA Healthcare, 2006: $33 billion.
  • RJR Nabisco, 1989: $25.1 billion equity ($31 billion including debt).
  • First Data, 2007: $29 billion.
  • Heinz, 2013: $28 billion.

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