Videogame maker EA in advanced talks to go private at roughly $50 billion valuation
A smartphone with the Electronic Arts logo is seen in front of a displayed character from the Battlefield 2042 game in this illustration taken September 16, 2021. REUTERS/Dado Ruvic/Illustration
Electronic Arts, the videogame publisher behind titles such as "FC" and "Battlefield", is in advanced talks to go private at a valuation of roughly $50 billion, according to sources familiar with the matter.
A group of investors including private equity firm Silver Lake, Saudi Arabia's Public Investment Fund and Jared Kushner's Affinity Partners could unveil a deal for the publisher as soon as next week, the sources said on Friday. If it goes through, the deal would mark the largest ever leveraged buyout in history.
The take-private offer comes at a crucial time for EA, which is banking heavily on its core sports portfolio and action shooter intellectual property to weather a sluggish videogame industry as gamers get picky with spending.
EA's hopes rest heavy on "Battlefield 6", the latest installation in the popular shooter game franchise that has been lauded by fans for its detailed visuals and intense combat and which many analysts expect will sell millions of copies, as well as on its soccer title "FC 26".
The deal to take EA private would also mark further consolidation within the industry, after titans such as Activision Blizzard and Zynga were swooped up by even larger firms, further reducing the number of publicly listed videogame companies.
"EA does make sense as an acquisition target - the cash flows are fairly consistent and EA's annualized titles make for predictable revenue/profitability," D.A. Davidson & Co analyst Wyatt Swanson said.
Shares of EA closed around 15 per cent higher on Friday.
Large-cap M&A is also rebounding in 2025 as boardroom confidence, consolidation logic and cheaper capital are finally lining up again.
Goldman Sachs president John Waldron had said earlier in the week CEOs and boards were "stepping out" after a two-year lull, with U.S. megadeals leading the charge and expected Fed rate cuts easing the cost of capital, conditions that make it easier to pursue scale, synergies, and strategic repositioning through mergers rather than organic investment alone.
EA, Affinity Partners and PIF did not immediately respond to Reuters' requests for comment. Silver Lake declined to comment.
Affinity Partners, founded by U.S. President Donald Trump's son-in-law Kushner, has investments from funds in Saudi Arabia, Qatar and the United Arab Emirates.
Silver Lake has long been known for major technology buyouts and is one of the largest tech-focused private equity firms.
The Wall Street Journal had first reported on the deal talks earlier on Friday.
SAUDI'S INCREASING BETS ON GAMING
PIF is Saudi's sovereign wealth fund and has bought or made major investments in videogame firms through its gaming arm, Savvy Games Group, in a bid to increase its influence in the largest entertainment industry in the world.
The investments are also a part of Saudi's "Vision 2030" strategy to diversify the Kingdom's economy beyond oil.
Analysts believe PIF's interest in EA stems from its highly recognizable sports portfolio which includes the widely popular soccer franchise "FC", which has a strong appeal worldwide and carries robust revenue potential.
"For Saudi Arabia's PIF, the deal would cement games as cultural infrastructure — assets as critical to global influence as sports or film," said Joost van Dreunen, games professor at NYU Stern School of Business.
Along with videogames, the Kingdom has invested heavily in esports and competitive gaming, with its esports foundation having announced a new nation-focused tournament next year, of which EA is a partner.
