Electronic Arts is said to be nearing an estimated $50 billion take-private deal backed by Silver Lake, Saudi Arabia’s Public Investment Fund and Affinity Partners, the investment company led by Jared Kushner, according to The Wall Street Journal. The expected value of the deal would rank it as one of the largest leveraged buyouts ever and, according to historical rankings by Dealogic, could be a record.
Shares of the struggling video game publisher rose after the report, highlighting investor hope that a go-private move might unlock value from EA’s enduring franchises and live-services business model. EA has been publicly traded since 1990, so the potential buyout stands as a landmark moment for one of the sector’s most revered companies.
Who Is Backing the Bid for Electronic Arts
Silver Lake is expected to be the lead on the transaction. The firm has extensive experience in technology take-privates and media assets, including the recent take-private of Endeavor and a central role in the Dell deal a decade ago. It’s an indication of an operational thesis that concentrates on long-term IP development, live services and global licensing instead of short-term cost cuts exclusively.
Already a large EA shareholder, controlling nearly a tenth of the company as of 2023, is Saudi Arabia’s Public Investment Fund, bringing considerable capital firepower to bear. PIF has turned gaming into a strategic focus of its diversification strategy, forming Savvy Games Group and accumulating stakes in publishers including Activision Blizzard, Take-Two Interactive Software and Nintendo Co. The presence of Affinity Partners, heavily backed by the PIF, completes the group of investors and serves as another channel for Gulf capital.
Why Electronic Arts Is an Attractive Private Target
The company’s portfolio provides reliable cash flows based on perennial franchises: EA Sports FC (the FIFA follow-up), Madden NFL, Apex Legends, The Sims and Battlefield. Live services—continuing content, seasonal passes, and in-game monetization—drive recurring revenue, which EA has focused on for the past several years. Company filings have continuously shown live services to represent the bulk of net bookings, a profile that private owners prefer for its predictability and margin potential.
Sports licensing is a serious moat. EA’s multiyear deals with global soccer bodies and U.S. leagues mean annual releases with existing player bases attached. Its little-known Apex Legends, created with Respawn Entertainment, proves the company has a talent for scaling free-to-play ecosystems. “This is a media library that can be commercialized across platforms, territories, and formats.”
How a Potential Take-Private Deal Might Be Structured
A transaction of this size would be based on a combination of equity and large debt financing. With benchmark rates well above those seen in previous LBO booms, arrangers would probably combine term loans with bonds and perhaps include a large equity check to get leverage down to comfortable levels for rating agencies and lenders. The sponsors’ previous relationships with banks and private credit funds would be important to unlock the financing.
With PIF’s involvement and its current stake, a closing would almost certainly be subject to a review by the Committee on Foreign Investment in the United States. Video games are not a traditional national security sector, but CFIUS’s jurisdiction is broad and foreign-control questions in transactions with sovereign wealth funds are routine. Antitrust focus is likely to be heavier than for horizontal mergers, but less so when a financial buyer group—as opposed to an industry rival—is involved.
Strategic Stakes for Saudi Arabia and Its Allies
PIF’s gaming investments are part of a wider push into entertainment and technology. Savvy Games Group said it has multi-billion-dollar plans to invest across publishers, studios and esports, as the kingdom tries to position itself as a regional hub. A marquee asset like EA would amplify that strategy and provide leverage in global content pipelines, tournament ecosystems and mobile expansion.
For Silver Lake, EA delivers scale and IP breadth rarely seen in the public markets. In private ownership, there might be scope for bolder bets—from cloud distribution to cross-media adaptations—unfettered by the quarterly cadence of public reporting. Affinity Partners’ involvement, with backing from Abu Dhabi and its affiliates, underscores the growing power of Gulf money in American tech and media deals.
Potential Effects on the Gaming Industry and Partners
If it is completed, the EA take-private would come on the heels of blockbuster transactions like Microsoft’s purchase of Activision Blizzard. Financial buyouts do tend to maintain a multi-platform strategy, but new owners are known for driving operational efficiencies and focused investment in growth areas such as live ops, mobile and subscriptions. Licensing partners—including the successor bodies to FIFA, as well as major sports leagues—will be watching for reassurances about a commitment to an annual release cycle and community engagement.
The deal is another reminder of how sovereign wealth funds are redrawing the competitive map. Consolidation capital is going global, as state-backed pools compete with traditional private equity and Big Tech for premium content franchises.
What to Watch Next in the Potential EA Take-Private
Key signposts would be a firm deal, the proposed premium to EA’s pre-report price, any opportunity for rivals to bid, and aspects of the financing package. The timing will depend largely on regulatory milestones—particularly any required review by the Committee on Foreign Investment in the United States. “Internally, retention plans for studio talent and leadership will be a key lever to sustain development velocity across in-studio franchises.”
For now, the market is viewing that possible buyout as a vote of confidence in EA’s long-term IP and service model. If the consortium closes at or near its reported valuation, it would establish a new high-water mark for leveraged buyouts and confirm gaming’s position as one of the most sought-after content categories on global finance.
