Electronic Arts is heading into what may be the final chapter of its life as a publicly traded company—and investors are repositioning in real time.
On December 25, 2025, a new institutional filing spotlighted a major reduction in EA shares by DAVENPORT & Co LLC, the latest in a string of ownership updates that have piled up since the company agreed to a $55 billion take-private transaction priced at $210 per share. With shareholders already voting “yes” and the deal now shifting into regulatory review, the market’s focus has turned to closing risk, timelines, and which holders are choosing to stay in—or step aside. [1]
Davenport cuts Electronic Arts holdings by more than 70% in Q3 filing
The newest update comes from DAVENPORT & Co LLC, which disclosed it reduced its Electronic Arts position by 71.4% during the third quarter, selling 253,076 shares and ending the quarter with 101,531 shares. The firm’s remaining EA stake was valued at about $20.508 million at the end of the quarter, according to the filing coverage. [2]
It’s important context: institutional disclosures like these typically reflect quarter-end positioning, meaning the activity occurred in the period when markets were digesting EA’s blockbuster take-private announcement and the early merger process dynamics.
MarketBeat’s summary also notes that institutional ownership remains high—around 90.23%—underscoring how heavily EA’s shareholder base is dominated by funds, banks, and asset managers rather than retail investors. [3]
Other recent filings show mixed moves: trimming, rebalancing, and a new entrant
Davenport isn’t the only institution making visible changes in EA. Two other filings published earlier in December add to the picture of a shareholder base actively adjusting exposure.
Wedge Capital Management trims a $38.4 million EA position
In a filing report dated December 21, 2025, Wedge Capital Management L L P NC disclosed it cut its EA stake by 26.1% in Q3, selling 67,288 shares and finishing the quarter with 190,384 shares, valued at about $38.4 million. The report also said Wedge held roughly 0.08% of the company at quarter end. [4]
Sanders Morris Harris opens a new EA position worth about $1.08 million
A separate report dated December 17, 2025 said Sanders Morris Harris LLC initiated a new position, acquiring 5,350 shares in Q3 valued at approximately $1.079 million. [5]
Put together, the three filings reflect a market where some institutions are reducing exposure, others are holding, and at least some are still initiating positions—often consistent with the “merger arb” reality of public-company buyouts, where different investors have different mandates, risk tolerance, and time horizons.
The big December 25 headline: EA shareholders approve the $55 billion buyout
The backdrop to these stake changes is the deal itself. On December 25, 2025, Outlook India’s Respawn vertical reported that EA shareholders approved the $55 billion acquisition, clearing the final internal vote hurdle and pushing the transaction into U.S. regulatory review. The same report reiterated the headline economics: $210 per share, a premium compared with where the stock traded before the deal was announced. [6]
Other coverage of the vote described it as a landslide approval. PC Gamer, citing an SEC filing, reported that more than 201 million votes were cast in favor, versus about 1.9 million against, with roughly 90,000 abstentions—a margin that effectively removes any remaining doubt about shareholder support and shifts attention to regulators and closing conditions. [7]
Who’s buying EA—and what happens next
The proposed acquirer group has been widely reported as a consortium that includes Saudi Arabia’s Public Investment Fund (PIF) alongside private investment partners including Silver Lake and Affinity Partners. The transaction, announced in late September, has been framed as one of the largest buyouts ever in the sector, and it is structured as an all-cash deal at $210 per share. [8]
Even with shareholder approval, the path forward typically involves a checklist of remaining conditions—especially when a major sovereign investor is part of the buyer group. Regulators can scrutinize transactions for competition issues and, depending on structure and jurisdiction, national-security considerations.
Why institutions may be trimming before a buyout closes
Institutional selling during a buyout process doesn’t automatically signal a bearish view of the company. In many cases, it reflects mechanics:
- Mandate constraints: Some funds can’t hold stocks involved in certain corporate actions, or they may be required to reduce positions if the investment no longer fits strategy objectives.
- Deal-spread math: If EA is trading below the $210 take-private price, the gap can represent an annualized return—or a risk premium for the possibility of delay or failure. Different investors disagree on whether that spread is attractive.
- Portfolio housekeeping: Quarter-end rebalances can force sales even when the underlying story is unchanged.
In short: 13F filings can be revealing, but they’re not real-time “votes” on whether the deal will close—they’re delayed snapshots of positioning.
Litigation and scrutiny add a layer of closing-risk noise
Another thread in today’s EA story is legal scrutiny around the merger process.
A December 24, 2025 press release distributed via PR Newswire said shareholder-rights law firm Johnson Fistel announced an investigation into whether EA’s board breached fiduciary duties in connection with the $210/share sale process. The release references the merger agreement date and the proposed consideration, and it encourages shareholders to contact the firm. [9]
Separately, EA has already been updating disclosures connected to litigation risk. A December 15, 2025 SEC filing describes shareholder lawsuits filed after the merger agreement announcement and states the company provided supplemental disclosure in connection with the proxy materials, while denying wrongdoing.
For readers following the deal: investigations and lawsuits are common in major M&A, particularly in large all-cash transactions. They don’t necessarily derail deals—but they can affect timing, disclosure obligations, and headline risk.
Inside EA: earnings pressure, insider sales, and what analysts have been saying
While takeover news dominates, the public-market narrative around EA’s business performance has remained part of the conversation.
MarketBeat’s coverage of recent filings points to EA’s latest reported quarter showing EPS of $0.65 versus a $0.72 consensus estimate and revenue of $1.84 billion versus $1.88 billion expected, representing a 12.6% year-over-year decline in quarterly revenue. [10]
MarketBeat also highlighted notable insider selling in recent months, including reported sales by the CFO and CEO, along with a broader tally of insider shares sold over a 90-day window. [11]
None of that changes the buyout price—$210 is $210—but it helps explain why, before the acquisition announcement, EA’s valuation debate was tied to execution: sustaining live services, annual sports releases, and blockbuster pipeline delivery in a gaming market that has been more volatile post-pandemic.
What to watch after December 25
With shareholder approval now in hand, the next phase is mostly out of shareholders’ control—and increasingly in regulators’ and financiers’ hands.
Key milestones to monitor:
- Regulatory review timeline: The more complex the review, the more time the deal can take—especially when foreign sovereign capital is involved. [12]
- Financing certainty and closing conditions: The September announcement outlined a major leveraged component and traditional closing conditions typical of transactions of this scale.
- Ongoing litigation/disclosure updates: Additional filings can appear as lawsuits progress or as companies supplement proxy and merger disclosures. [13]
- Trading behavior in the deal spread: If EA continues trading below $210, the market is signaling perceived risk or delay; if it narrows, confidence in closing may be increasing.
Bottom line
The December 25 update on Davenport’s sharp stake reduction adds a fresh datapoint to an EA shareholder base that’s clearly active and dynamic. But the dominant driver remains the same: Electronic Arts is now in the regulatory corridor of a $55 billion take-private deal, and investors are recalibrating around the odds—and timing—of that deal closing at $210 per share. [14]
References
1. www.marketbeat.com, 2. www.marketbeat.com, 3. www.marketbeat.com, 4. www.marketbeat.com, 5. www.marketbeat.com, 6. respawn.outlookindia.com, 7. www.pcgamer.com, 8. respawn.outlookindia.com, 9. www.prnewswire.com, 10. www.marketbeat.com, 11. www.marketbeat.com, 12. respawn.outlookindia.com, 13. www.prnewswire.com, 14. www.marketbeat.com
