Reports indicate that Electronic Arts (EA) is nearing a monumental $50 billion agreement to become a privately held company. If successful, this would represent the largest leveraged buyout ever recorded.
This potential shift for the publisher of popular titles like Madden and Battlefield was revealed in a report by the Wall Street Journal. Sources suggest that a consortium of investors, including private-equity firm Silver Lake, Saudi Arabia’s Public Investment Fund (PIF), and Affinity Partners—an investment firm led by Jared Kushner—are involved.
An official announcement regarding this alleged deal could arrive as early as next week. Prior to the Wall Street Journal’s report, EA’s market value stood at approximately $43 billion, but news of the potential private acquisition caused it to surge by nearly 15%, reaching around $48 billion.
This proposed $50 billion transaction, which would delist EA from public trading, significantly surpasses the $31.8 billion buyout of Texas power company TXU in 2007. If finalized, it would likely become the largest leveraged buyout in history, without factoring in inflation.
The Public Investment Fund’s (PIF) potential role in this buyout would further solidify Saudi Arabia’s considerable presence within the global gaming sector. PIF already holds a 10% stake in EA, and in 2022, it acquired a 5.01% ownership, making it one of Nintendo’s largest shareholders. Earlier this year, Niantic, the developer behind Pokémon Go, also sold its game portfolio to Scopely, a mobile game developer under the control of Savvy Games and PIF.
Last month, Ubisoft encountered criticism following the announcement of Assassin’s Creed Mirage DLC set in Saudi Arabia. This content reveal came after a French news report detailed a partnership between Ubisoft and PIF. Reportedly, Ubisoft employees had previously voiced concerns regarding this collaboration with the controversial entity.
Meanwhile, Silver Lake already possesses a partial stake in the game engine technology company, Unity. If this deal proceeds, PIF, Affinity, and Silver Lake would become the new owners as EA transitions to private ownership.
EA’s recent releases feature prominent EA Sports titles like EA Sports FC 26 and Madden NFL 26, alongside Skate. Additionally, next month will see the launch of Battlefield 6 by DICE, an Electronic Arts developer. This upcoming release is considered a crucial moment for both the Battlefield franchise and EA as a whole.
IGN has sought comment from Electronic Arts regarding these developments.