Electronic Arts Inc.

Electronic Arts Inc. is an American interactive entertainment company that develops, markets, publishes, and delivers video games, content, and services for game consoles, personal computers, and mobile devices, generating $7.53 billion in GAAP net revenue in its fiscal year ended March 31, 2026. Its portfolio includes some of the most valuable franchises in the industry — EA SPORTS FC, Battlefield, Apex Legends, The Sims, Madden NFL, and College Football — and live services, principally extra content sold through the Ultimate Team mode across its sports titles, now represent 71% of revenue.

This is not, at the moment, a conventional equity story. On September 28, 2025, EA entered into a definitive agreement to be acquired by a consortium of Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners for $210 per share in cash, valuing the company's equity at roughly $53 billion in what would be the largest leveraged buyout in history. EA's stockholders approved the transaction with approximately 99.1% of votes cast in December 2025. At $208.87 per share as of July 28, 2026, the stock trades at a spread of barely half a percent to the buyout price — the market's way of saying this is all but done. The European Commission cleared the deal under EU merger rules on July 23, 2026, and the final material regulatory checkpoint — the EU Foreign Subsidies Regulation review — is due July 30, 2026, two days after this report's as-of date.

The file therefore turns on two questions that are really one: will the merger close, and if it does not, what is Electronic Arts worth on its own? Answering the second question requires understanding a business that is simultaneously one of the most durable compounders in interactive entertainment and one whose GAAP earnings are under real pressure — operating income fell 24% in FY2026 even as net bookings hit a record $8.03 billion, because the investment cycle around Battlefield 6 and a structural step-up in R&D spend consumed the top-line gain.