Electronic Arts, the prominent video game publisher, is reportedly looking to transition to a private entity in a potential deal valued at up to $50 billion. This information comes from various sources, including The Wall Street Journal, Reuters, and Financial Times.
According to these reports, an announcement regarding the deal could be made as early as next week. Notable investors, including Silver Lake, Saudi Arabia’s Public Investment Fund (PIF), and Jared Kushner’s Affinity Partners, are reportedly expressing interest in participating in the investment. The Wall Street Journal highlighted that this action “would likely be the largest leveraged buyout ever.”
The Saudi PIF held approximately a 9 percent share in EA as of last year, positioning itself among the company’s largest stakeholders. Additionally, the fund has made substantial investments in other major gaming companies, including Nintendo, Take-Two, Activision Blizzard, Capcom, Nexon, and Koei Tecmo, which are managed by Savvy Games Group.
On Friday afternoon, EA’s stock surged by roughly 15 percent, reversing a month-long period of relative stability in its stock price.
Since its initial public offering on the NASDAQ in 1990, EA’s market capitalization has seen significant growth, reaching $1.61 billion by 1996. Prior to the recent uptick in stock price, the company’s valuation was around $43 billion, bolstered by popular franchises such as Madden NFL, EA FC (formerly FIFA), The Sims, and Battlefield.
