Electronic Arts (EA), the video game giant behind franchises like Madden and FIFA, is approaching a deal to go private, The Wall Street Journal reported Friday.
The deal, valued at around $50 billion, would be the largest leveraged buyout in history.
According to the Wall Street Journal, the investors involved in the buyout include the private equity firm Silver Lake, Saudi Arabia’s Public Investment Fund (PIF), and Affinity Partners, an investment firm formed by President Trump’s son-in-law, Jared Kushner. Saudi Arabia’s PIF currently provides Affinity Partners with most of its funds. As of 2023, Saudi Arabia’s PIF also owns nearly 10 percent of EA.
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The EA buyout would be the latest in a series of gaming investments by Saudi Arabia, part of the country’s tactics to lessen economic dependence on oil. In 2021, the PIF launched Savvy Games Group, dedicated to investing in video games and esports. Saudi Crown Prince Mohammed bin Salman serves as Savvy Games Group’s chairman.
In addition to EA, the PIF currently holds stakes in Activision Blizzard, the company behind Call of Duty and World of Warcraft, and Take-Two Interactive, the company behind Borderlands and Grand Theft Auto. The PIF also has a stake in Nintendo, although in 2024, it cut down on its shares.
Following the Wall Street Journal‘s report, shares of EA closed up 15 percent on Friday. EA has been publicly traded since 1990. EA could announce the buyout as soon as next week.
