Breakingviews - Saudi's EA Acquisition Appears to Be a Risky Expansion Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 01 2025
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Source: Reuters
Saudi Investment in Electronic Arts: Saudi Arabia's Public Investment Fund (PIF), led by Mohammed bin Salman, is investing in the $55 billion take-private deal of Electronic Arts, despite a recent focus on domestic investments and the uncertain profitability of this venture.
PIF's Investment Strategy: The PIF's international investments have decreased, with a shift towards boosting local firms and diversifying the economy away from oil, although the returns on these investments have been declining, raising concerns about the timing and rationale behind the EA acquisition.
Analyst Views on EA
Wall Street analysts forecast EA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EA is 215.00 USD with a low forecast of 210.00 USD and a high forecast of 250.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
2 Buy
6 Hold
0 Sell
Hold
Current: 204.380
Low
210.00
Averages
215.00
High
250.00
Current: 204.380
Low
210.00
Averages
215.00
High
250.00
About EA
Electronic Arts Inc. is a digital interactive entertainment company. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers. It develops and publishes games and experiences across diverse genres, such as sports, racing, first-person shooter, action, role-playing and simulation. Its portfolio of brands includes EA SPORTS FC, Battlefield, Apex Legends, The Sims, EA SPORTS Madden NFL, EA SPORTS College Football, Need for Speed, Dragon Age, Titanfall, Plants vs. Zombies and EA SPORTS F1. The Company also offers live services, including extra content, subscription offerings and other revenue generated outside of the sale of its full games. It primarily distributes its console products and services through partners, such as Sony and Microsoft. It distributes its mobile applications and additional content through distributors such as Apple and Google.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
