Electronic Arts in advanced talks for $50 billion go-private deal

Electronic Arts (EA) is in advanced talks to go private in a deal worth approximately $50 billion. Following the announcement, the video game publisher’s stock surged, surpassing 14% today, to a high of $197.33.

A group of interested investors, including Saudi Arabia’s Public Investment Fund and Silver Lake, a private equity firm, is engaged in discussions with Electronic Arts. The deal may be confirmed to the public as early as next week. 

Electronic Arts’ stock rallies above 15% today following the announcement

The Wall Street Journal reported today that Electronic Arts’ $50 billion deal to go private would mark the largest leveraged buyout ever. If it goes through, the deal will surpass the current record held by TXU Energy, which was worth $45 billion in 2007. 

The video game publisher is based in Redwood City, California, and is best known for its sports franchises, Madden NFL and FC soccer series, formerly branded as FIFA. Titles such as The Sims and the Battlefield series are also included in EA’s portfolio.

Electronic Arts’ stock has rallied today, surpassing 15% with a high of $197.33 over the past 24 hours following the announcement. The stock YTD is up to 32.2%, with a year range of $115.21 – $197.33. The company’s market value has increased to $48.28 billion, with an average daily trading volume of $2.66 million from approximately $42 billion. For the longest part of the year, Electronic Arts’ stock maintained a range of $127 to $130 before rallying to $193.3 today at publication.

The video game publisher launched College Football 26 in July, following last year’s edition’s success. College Football 25 became one of 2024’s best-selling releases. The first trailer for Battlefield 6 was also revealed, with plans for release in the current fiscal year. The release may receive a positive outlook as the company plans to transition the franchise following last year’s edition market flop.

Electronic Arts‘ games struggled financially in the first half of this year despite posting strong titles. The latest Q3, 2025 financial results release in February showed that the company recorded a 6.4% drop in revenue year over year. The firm attributed the decline to weak sales of its FC 25 game and new Dragon Age title. It added that there have been uncertainties in the consumer spending section for its core games amid challenging markets. EA Sports had forecast Q2 results below Wall Street estimates, further driving down the investor confidence in its stock performance. 

Saudi PIF and Silver Lake among investors circling EA privatization deal

To improve investor appetite for its stock, the video game publisher announced a $1 billion stock buyback plan as part of a $5 billion authorization. The buyback was expected to bring in at least $2.5 billion. 

According to Investgame research, at least $21 billion has been directed into the gaming sector since 2018 by private equity firms and global wealth funds, with 68 deals recorded through that period. The research revealed that the inflows have been supported by the live service models and digital storefronts. 

In line with that trend, Saudi Arabia’s Public  Investment Fund and Silver Lake have been captured as interested parties in the deal to acquire EA Sports. Other mentions include Dell Technologies, Endeavour, and AMC Entertainment.

Elsewhere, Microsoft acquired Activision Blizzard for $68.7 billion, and Take-Two Interactive acquired Zynga in a $12.7 billion deal. Savvy Games Group purchased $4.9 billion of Scopely in the private equity section, while CVC invested $1.3 billion in Dream Games. If the deal continues, EA’s privatization would mark the largest transaction in the global gaming industry. 

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Source: https://www.cryptopolitan.com/electronic-arts-50-billion-go-private-deal/