EA May Go Private In $50 Billion Deal

Open the lines of credit // Illustration by Kate Walker

Top video game developer Electronic Arts may go private in a $50 billion leveraged buyout deal — the largest of its kind ever.

Why It Hits: EA — the creator of iconic franchises like FIFA, Madden, and The Sims — has been a gaming powerhouse since the ’80s and a public company since 1990. Taking it private would require massive capital, and financing the deal through a leveraged buyout (using primarily debt to fund the transaction) signals that buyers believe EA will continue delivering blockbuster hits in the near term.

Behind The Deal: The largest leveraged buyout to date was the 2007 Texas-based utility firm TXU Energy for $32 billion.

The EA deal would blow it out of the water.

  • Buyers include PE firm Silver Lake (which is also taking a stake in the American version of TikTok), Saudi Arabia’s Public Investment Fund (already a 10% EA shareholder), and Jared Kushner’s investment firm Affinity Partners.

  • Before the announcement, EA’s market cap was approximately $43 billion… but its stock jumped 15% upon the news, lifting its value to $48 billion.

  • Additionally, Wall Street has already been high on EA thanks to hype for Battlefield 6, the next entry in one of EA’s flagship franchises.

Last Level: Leveraged buyouts typically target mature companies with predictable revenue, allowing investors to cut costs and eventually sell or merge at a profit. EA fits the bill — and has been floated as a potential Disney acquisition, as the entertainment giant looks to expand deeper into gaming.

Projection: If this deal goes through, it could set off a wave of M&A across the gaming industry, as firms look to scoop up developers to flip or combine into bigger players. We’re in the scale-or-die era.

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Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.

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