The EA Effect: Stock Jumps 15% on Go-Private Report

Electronic Arts (EA), the video game giant behind popular franchises like Madden NFL, FIFA, and The Sims, saw its stock surge 15% on Friday after reports emerged of a potential $50 billion go-private deal. According to The Wall Street Journal, an investor group comprising Silver Lake and Saudi Arabia’s Public Investment Fund could announce the deal as early as next week.

Key Details of the Report:

• Deal Value: $50 billion, potentially making it the largest leveraged buyout in history
• Investor Group: Includes Silver Lake and Saudi Arabia’s Public Investment Fund
• Expected Announcement: Possibly as soon as next week
• EA’s Recent Performance: $1.67 billion in revenue in its last quarter
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Market Reaction:

• EA’s stock jumped 15% on Friday, with shares rising to $193.35
• Rival Take-Two Interactive, publisher of Grand Theft Auto, also saw a 5% increase in its shares
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About Electronic Arts:

• Market Cap: $42.77 billion
• Price-to-Earnings Ratio: 41.04
• 52-Week Price Range: $115.21 to $180.90
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This potential deal would mark a significant shift for EA, taking the company private after years of public trading. If finalized, it would underscore the growing interest in private equity deals within the gaming industry.