electronic arts (EA), one of the giants of the video game industry, would be about to close an agreement valued in $50 billion dollars . The intention is to become a private company, as reported by The Wall Street Journal. If confirmed, it would be Greatest “Leveraged Buyout” in history, surpassing the previous record by far.
A milestone in the history of acquisitions
According to the sources mentioned, the group of investors would be made up of the private capital firm Silver Lake, the Public Investment Fund (PIF) of Saudi Arabia and Affinity Partners. This fund is run by Jared Kushner, Donald Trump’s son-in-law. An official announcement could arrive as soon as next Monday. No doubt, this would profoundly impact Electronic Arts.
Before the news came, EA had an approximate market value of 43 billion dollars. After the report, its shares shot up 15%, raising the valuation to almost 48 billion.
The possible agreement would far exceed the purchase of Texan energy TXU for $31.8 billion in 2007. Until now, this was considered the largest operation of its kind. The magnitude of the transaction underscores the appeal of the video game industry. It is especially notable for global investors, including interest in Electronic Arts.
Saudi Arabia and its presence in video games
The PIP already has about 10% of EA shares, in addition to being one of the main shareholders of Nintendo since 2022. It has also expanded its influence through Savvy Games Group, responsible for procurement such as the catalog of Niantic sold to Scopely.
However, the growing Saudi presence in the sector has generated controversy. Ubisoft, for example, faced internal and external criticism after revealing downloadable content from Assassin’s Creed Mirage Set in Saudi Arabia. This arose amid reports on agreements with the PIF. Thus, it highlights how Electronic Arts is also in the center of international interest.
For his part, Silver Lake already has participation in technology companies such as unity, developer of one of the most used graphics engines in the industry. If the movement materializes, the company would join PIF and Affinity as new owners of EA in its private stage.
The future of Electronic Arts and its franchises
The Publisher is going through a key moment in his catalog. This year he released new installments of EA SPORTS FC and Madden NFL. It also prepares the launch of Battlefield 6 From the hand of Dice. The company itself has pointed out this title as crucial to revitalize the franchise.
The possible privatization of EA would not only change the financial landscape of the company. It would also mark a new chapter in the relationship between international capital and the video game industry, especially for Electronic Arts.
