Electronic Arts may be about to disappear from the stock market. The Wall Street Journal reports that EA is discussing a sale that would take it private at a valuation of approximately $50 billion.
If signed, it would be the largest leveraged buyout (LBO) ever recorded, surpassing the $31.8 billion TXU Energy deal from 2007.
Insiders claim the announcement could come as soon as next week, though the final price is still being negotiated.
Who Is Trying to Buy EA?
Silver Lake is reportedly leading powerful private equity and sovereign wealth investors in a plan to take EA private.
Joining them is Saudi Arabia’s Public Investment Fund (PIF), which already owns about 10% of EA and has been pouring billions into gaming through its Savvy Games Group as part of the Kingdom’s broader Vision 2030 plan to diversify beyond oil.
The group also includes Affinity Partners, Jared Kushner’s fund, which reportedly has Middle Eastern backing. They supply the equity and have the means to obtain the financing needed for a leveraged buyout this big.
Why Is EA Attractive to Buyers?
EA draws investor interest by pairing reliable cash flow with growth potential.
Yearly sports titles such as EA Sports FC, Madden NFL, and College Football bring in predictable income.
On top of that, the company is making big near-term bets like Battlefield 6, which has already drawn a strong beta response and is expected by analysts to sell millions of copies.
EA’s value sat near $43 billion after a post-pandemic slump and several weak 2024 releases, giving buyers room to offer a premium.
Borrowing costs are lower and boardroom confidence is back, which is increasing mergers and acquisitions in 2025 and supporting large buyouts.
How Would a Buyout Like This Affect EA?
In an LBO, the buyers finance most of the purchase with loans backed by EA, so any earnings shortfall falls on the company rather than the investors.
That can mean cost-cutting, studio closures, or layoffs if debt service becomes tough. Analysts highlight Microsoft’s post-Activision layoffs as a warning sign for future deals.
Still, EA’s cash-rich sports lineup could support a heavy debt load if sales stay strong.
PIF has steadily expanded into gaming and entertainment with stakes in Nintendo, Capcom, esports, and events like WWE in Riyadh.
Supporters see it as cultural diversification and critics see it as sportswashing to improve the Kingdom’s human-rights image. If EA goes private with PIF as a key owner, that conversation will likely intensify.
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