San Francisco, United States – Electronic Arts Inc. (NASDAQ: EA) is in advanced negotiations to go private in a landmark deal valued at roughly $50 billion, according to people familiar with the matter. If finalized, it would mark the largest leveraged buyout in history and reshape the global videogame industry.
The bid is led by private equity firm Silver Lake, Saudi Arabia’s Public Investment Fund (PIF), and Jared Kushner’s Affinity Partners. A formal announcement could come as soon as next week. The transaction underscores a wave of renewed confidence in mega-cap M&A, with U.S. dealmaking rebounding as falling interest rates ease financing conditions.
For EA, the move comes at a crucial juncture. The publisher, behind blockbuster titles like “Battlefield” and “FC,” is betting on Battlefield 6 and “FC 26” to anchor steady revenue streams as the wider videogame market cools. Analysts say EA’s reliable annualized sports portfolio makes it an attractive target, offering predictable cash flows even in periods of consumer belt-tightening.
Industry observers note that the buyout would further accelerate gaming consolidation. Recent years have already seen major acquisitions including Activision Blizzard and Zynga, shrinking the pool of publicly listed publishers. “EA does make sense as an acquisition target — its revenues are stable, and the annual sports cycle provides consistent profitability,” said Wyatt Swanson, analyst at D.A. Davidson & Co.
Shares of EA surged 15% on Friday following reports of the negotiations. Silver Lake declined to comment, while EA, Affinity Partners, and PIF have yet to issue statements.
Saudi Arabia’s gaming ambitions
The PIF has steadily expanded its gaming portfolio through Savvy Games Group as part of its Vision 2030 diversification drive. Analysts argue EA’s globally popular “FC” franchise could strengthen Riyadh’s cultural footprint, making games as critical to soft power as sports or cinema.
“Securing EA would be a cultural infrastructure play for Saudi Arabia, one that extends influence well beyond oil,” said Joost van Dreunen, professor at NYU Stern School of Business.
PIF’s esports foundation has also announced new international tournaments for next year, with EA already on board as a partner, signaling deeper integration of the Kingdom’s gaming investments with its global entertainment strategy.
If successful, the EA go private deal would reshape the competitive landscape of gaming, aligning one of the industry’s most iconic publishers with sovereign wealth capital and private equity backing.
