The Final Stretch for Electronic Arts as Privatization Nears

Institutional confidence is growing as Electronic Arts (EA) approaches its historic transition to private ownership. The $55 billion leveraged buyout, approved by shareholders in December 2025, represents the largest deal of its kind in the gaming industry's history. With the final steps underway, key developments are shaping the company's path off the public market.

Recent regulatory filings reveal a significant vote of confidence from a major institutional player. The Oregon Public Employees Retirement Fund has substantially increased its stake in the video game publisher. The fund purchased an additional 6,033 shares, boosting its total holding by 30.7% to 25,692 shares. At Friday's closing price, this position is valued at approximately $5.25 million. Market strategists view this activity as a classic merger arbitrage play, where investors aim to capture the remaining spread between the current trading price and the agreed acquisition price of $210 per share.

On the operational front, EA is streamlining its portfolio. The company has confirmed it will take the servers for BioWare's title "Anthem" offline permanently on January 12, 2026. This shutdown is part of a broader series of sunsetting initiatives designed to reduce costs associated with legacy infrastructure ahead of the privatization.

Addressing Community and Creative Concerns

In a notable move to safeguard its valuable intellectual property, one of EA's most profitable franchises has directly addressed player concerns. The development team behind "The Sims," which is created by Maxis, issued a rare statement to its community. It sought to reassure players about the franchise's creative direction following the acquisition by a consortium led by Saudi Arabia's Public Investment Fund (PIF). The team emphasized that Maxis would retain "full creative control" and that the core values of inclusion would remain unchanged. Analysts interpret this communication as a critical effort to stabilize the player base and protect the lucrative live-service revenue streams the title generates.

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

Deal Mechanics and Regulatory Timeline

The consortium, spearheaded by the PIF, is financing the massive transaction with roughly $36 billion in equity and $20 billion in debt. As of the latest market close on Friday, EA shares traded at $204.23, sitting just 2.7% below the $210 takeover bid.

The process is now entering its final regulatory phase. Crucial decisions from competition authorities in the United States (FTC) and the United Kingdom (CMA) are anticipated by the end of February. Barring any unforeseen regulatory obstacles, the privatization is scheduled for completion between April and June 2026.

Given the narrow gap between the current share price and the takeover offer, the consensus analyst recommendation for retail investors remains at "Hold." Trading is expected to continue within a tight range around the $205 mark, driven primarily by arbitrage dynamics until the deal is finalized.