Report: Investors in “advanced talks” in $50bn leveraged buyout of EA

Electronic Arts is reportedly in “advanced talks” to go private in a leveraged buyout worth $50 billion.

That’s according to the Wall Street Journal, with sources alleging that Saudi Arabia’s Public Investment Fund (PIF), private-equity firm Silver Lake, and Jared Kushner’s investment firm Affinity Partners are involved.

As noted by IGN, EA’s market value rose 15% from $43 billion to $48 billion following the news.

GamesIndustry.biz has contacted EA for further clarification and comment.

Analysts told Reteurs that PIF’s involvement in the alleged deal was likely due to the global success of its sports portfolio.

The outlet highlighted that if this deal were to go through, it would be “the largest ever leveraged buyout in history.”

“For Saudi Arabia’s PIF, the deal would cement games as cultural infrastructure – assets as critical to global influence as sports or film,” said NYU Stern School of Business games professor Joost van Dreunen.

The PIF already has an estimated 10% ownership stake in Electronic Arts. It bought over $3 billion of stock in the company in 2021, alongside Activision Blizzard and Take-Two Interactive.

The PIF increased its stake in EA in 2023 by 55%.