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AsianFin — Electronic Arts (EA), one of the world’s most prominent video game developers, is reportedly on the verge of being taken private in what could become the largest leveraged buyout (LBO) in history.
According to The Wall Street Journal, people familiar with the matter said the potential buyers include private equity giant Silver Lake, Saudi Arabia’s Public Investment Fund (PIF), and Affinity Partners, the investment firm founded by Jared Kushner, son-in-law of former U.S. President Donald Trump. The deal could be announced as early as next week.
If completed, EA would delist from the public market and return to private ownership, marking a seismic shift in the global gaming sector. EA currently carries a market capitalization of $48.3 billion, and news of the negotiations pushed its stock up nearly 15% on Friday.
The transaction is expected to involve a significant debt package arranged by major investment banks, including JPMorgan Chase, The Financial Times reported. Should the deal close, it would eclipse the record set in 2007 when KKR, TPG, Goldman Sachs, and other investors acquired Texas utility TXU for about $45 billion. Within gaming, only Microsoft’s $68.7 billion acquisition of Activision Blizzard in 2022 would surpass the EA deal in value.
Analysts suggest that privatization could reshape how investors view major gaming companies, placing greater emphasis on stable cash flow, balance sheet resilience, and leverage capacity rather than solely on the quality of game titles.
Founded in 1982 by Trip Hawkins, a former Apple executive, EA grew into a household name with blockbuster franchises such as FIFA, Need for Speed, Battlefield, and The Sims. Headquartered in California, the company has long operated global studios and publishing offices across North America, Europe, Asia, and Australia. At its peak, EA employed more than 10,000 staff worldwide.
Yet the company has struggled in recent years. Since 2023, EA has undergone multiple rounds of restructuring and layoffs. Last year, it reorganized into two units—EA Sports and EA Entertainment—and this spring, it cut 300 jobs and canceled several projects, including high-profile shooter and sports titles. EA also shut down its Cliffhanger Games studio in May.
Persistent acquisition rumors have swirled since 2022, with Disney, Apple, Amazon, and Comcast all previously linked to potential buyouts. While none materialized, EA’s consistent profitability and library of enduring intellectual property made it an attractive target.
The participation of Saudi Arabia’s PIF highlights Riyadh’s growing push into global gaming. The sovereign wealth fund has been steadily increasing its stake in the sector, including a $1.1 billion purchase of EA shares in 2021, giving it around 10% ownership. In 2022, PIF also launched Savvy Gaming Group to spearhead investments aimed at turning Saudi Arabia into an international hub for gaming and esports, aligning with its Vision 2030 strategy.
Market watchers are closely eyeing EA’s upcoming release of Battlefield 6, expected to play a pivotal role in the company’s near-term financial performance. With shooter games enjoying a global upswing, EA’s flagship titles remain key to sustaining its leading position.
If finalized, the buyout would not only cement EA’s value as a premier gaming company but also underscore the increasing role of sovereign wealth and private equity capital in shaping the future of the industry.
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