Electronic Arts (EA), a prominent video game developer known for franchises such as Madden and FIFA, is reportedly nearing a deal to go private, as reported by The Wall Street Journal. Valued at approximately $50 billion, this buyout would mark the largest leveraged buyout in history.
Key investors involved in the potential buyout include the private equity firm Silver Lake, Saudi Arabia's Public Investment Fund (PIF), and Affinity Partners, an investment firm led by Jared Kushner, the son-in-law of President Donald Trump. Notably, the PIF currently owns nearly 10 percent of EA and is the primary financial backer for Affinity Partners.
This move aligns with Saudi Arabia's broader strategy to diversify its economy away from oil dependency. The PIF has been actively investing in the gaming sector, having established the Savvy Games Group in 2021, which focuses on video games and esports investments. Crown Prince Mohammed bin Salman chairs this group.
In addition to EA, the PIF holds significant stakes in other major gaming companies, including Activision Blizzard, known for titles like Call of Duty and World of Warcraft, and Take-Two Interactive, the developer of Borderlands and Grand Theft Auto. The PIF also previously held shares in Nintendo but reduced its stake in 2024.
Following the news of the buyout negotiations, EA's shares surged by 15 percent, reflecting investor optimism. The company, which has been publicly traded since 1990, is expected to make an announcement regarding the buyout as early as next week.