Electronic Arts
-7%
est. 2Y upside i
Rank
#3778
Sector
Interactive Entertainment
Est. Liquidity
~1Y
Data Quality
Data: HighElectronic Arts is currently valued at $49.6B, with a high probability of being acquired for $55B, or $210 per share, by Q1 FY27.
Last updated: March 10, 2026
The $55 billion acquisition by the Saudi Public Investment Fund, Silver Lake, and Affinity Partners closes smoothly and on schedule in Q1 FY27, leading to the stock trading at or slightly above the $210 per share acquisition price, representing a 10.89% upside from the current $49.6B valuation.
The acquisition by the consortium proceeds as planned and closes at $55 billion in Q1 FY27, with shareholders receiving $210 per share. This results in a 10.89% upside from the current $49.6B valuation.
The acquisition fails to close due to significant regulatory hurdles (e.g., from the FTC or CFIUS) or other unforeseen issues. EA's valuation reverts to its pre-acquisition fundamentals, potentially dropping to around its unaffected share price of $168.32, resulting in a market cap of approximately $42.1B and a -15.12% downside from the current valuation.
Preference Stack Risk
lowAs a publicly traded company being acquired, the concept of liquidation preferences for preferred shares does not apply; common shareholders will receive the acquisition price per share.
Dilution Risk
lowGiven the company is public and subject to an all-cash acquisition, the risk of future dilution for existing equity holders is minimal.
Secondary Liquidity
activeAs a publicly traded company on NASDAQ, EA's stock has active secondary market liquidity.
Questions to Ask at the Interview
Strategic questions based on Electronic Arts's data — designed to show you've done your homework.
- 1
“Given the impending acquisition by the consortium, how does EA plan to maintain its competitive edge and foster innovation under new ownership, particularly with the stated goal of transforming operations through AI?”
- 2
“With EA's organic revenue growth at ~-1% YoY, what specific strategies are in place to drive growth in core franchises and expand into new market segments post-acquisition, especially considering the broader TAM growth of ~8% YoY?”
- 3
“Considering the $55 billion acquisition is expected to close in Q1 FY27, how will employee equity, including RSUs or options, be handled upon the company going private, and what is the long-term vision for employee compensation and retention in the new ownership structure?”
Community
Valuation Sentiment
Our model estimates -7% upside. What do you think?
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Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.