Shares of Electronic Arts (EA) edged up 0.3% on Monday following a report that the video game publisher and the consortium acquiring it for $55 billion are growing more confident the European Commission will clear the deal after a preliminary Phase 1 review.
The transaction, which would take EA private, has been under regulatory scrutiny in Brussels. According to sources familiar with the matter, both sides now anticipate a conditional approval from the EU antitrust watchdog without the need for an in-depth Phase 2 investigation.
Deal Details
The consortium, led by private equity firms, agreed to acquire EA for $55 billion in cash. The deal has already secured clearance in several jurisdictions, but the European review has been a key remaining hurdle. A Phase 1 approval would remove a significant uncertainty and could pave the way for a final closing later this year.
Market Reaction
EA shares traded near $132 in afternoon trading, reflecting cautious optimism. Investors have been watching regulatory developments closely, as the deal's completion would mark one of the largest leveraged buyouts in the gaming industry. The stock has gained roughly 15% since the acquisition was announced.