29 September 2025
If you are covering the news that Electronic Arts has agreed a deal to sell the company for $55bn, please see the following comment from Ben Barringer, global technology analyst at Quilter Cheviot:
“Electronic Arts’ $55 billion take-private deal is a good result for investors and the company alike. The gaming industry has had a very volatile time in recent years, particularly pre, during and post-covid. The pandemic saw growth rates rise massively, before falling off considerably afterwards.
“EA has not executed perfectly since, but it remains a relatively unique asset. Video gaming is a hit driven business, intending to capture people’s imagination and attention and do so perfectly, but executing on a franchise can be a bit volatile. Businesses such as EA that struggle to perform consistently quarter to quarter can find it difficult to be liked by the stock market, so taking it private can resolve the issue.
“The proposed $55 billion deal would also see the company valued at around 23 to 24 times earnings, which places it roughly in line with Activision Blizzard’s recent sale to Microsoft but below peak multiples when the industry was really taking off. The deal would also complete just ahead of the Battlefield 6 launch so would be well timed.”
