Private equity giants, including Silver Lake and Saudi Arabia’s Public Investment Fund, are close to executing what could be the largest leveraged buyout in history.**
Electronic Arts (EA), the powerhouse behind iconic franchises such as EA Sports FC, Madden NFL, and The Sims, is in late-stage discussions to go private in a leveraged buyout valued at approximately $50 billion, according to sources familiar with the negotiations.
The deal, if finalized, would mark one of the largest private equity transactions ever and the biggest leveraged buyout to date—surpassing previous megadeals like the 2007 TXU Energy acquisition. Leading the investor group is Silver Lake, a prominent technology-focused private equity firm. They are joined by Saudi Arabia’s Public Investment Fund (PIF), and Affinity Partners, the investment firm founded by Jared Kushner.
Insiders say an official announcement could come as soon as next week, though the deal has not yet been finalized and could still fall apart. Negotiations are ongoing around financing terms and regulatory considerations.
Founded in 1982 and headquartered in Redwood City, California, EA is one of the most recognizable names in the gaming industry. The company boasts tens of millions of players worldwide and a portfolio of top-selling game titles. Its shift to digital distribution and in-game monetization strategies has helped it weather industry cycles and expand revenue over the past decade.
The move to take EA private comes amid increasing consolidation in the gaming industry. Major players like Microsoft and Sony have been acquiring studios and expanding their game portfolios, while private capital continues to flood the sector, seeing long-term value in interactive entertainment. EA’s steady cash flow and strong intellectual property make it an attractive target for investors seeking durable assets in an increasingly digital world.
While going private would allow EA to focus on long-term strategic development away from quarterly market pressures, the sheer scale of the deal raises questions about antitrust scrutiny and regulatory hurdles, especially given the involvement of sovereign wealth funds and politically connected firms.
If successful, the transaction will not only reshape EA’s future but also signal a new era of blockbuster private equity in the gaming sector—where creativity, capital, and control collide.
