EA Reportedly in $50 Billion Buyout Talks That Could Take the Publisher Private

Electronic Arts (EA), one of the largest video game publishers in the world, is reportedly in advanced talks to go private through what could become the biggest leveraged buyout in history. Sources familiar with the matter told The Wall Street Journal that the deal, valued at around $50 billion, could be announced as early as next week.

The potential investor group includes Saudi Arabia’s Public Investment Fund (PIF), private equity firm Silver Lake, and Jared Kushner’s Affinity Partners. If completed, the transaction would mark the largest single investment by Saudi Arabia in the gaming sector to date, expanding its already significant footprint in global entertainment.

The PIF has steadily increased its influence in gaming and esports, holding stakes in major publishers such as Activision Blizzard, Take-Two Interactive, and EA itself, while also becoming the largest external investor in Nintendo with an eight percent share. These moves are part of Riyadh’s broader strategy to diversify its economy away from oil and establish the kingdom as a hub for sports and entertainment.

That strategy, however, has drawn heavy criticism. Human rights groups and many gamers accuse Saudi Arabia of “sportswashing” – using high-profile investments to improve its global image and deflect attention from its human rights record. The backlash has already disrupted partnerships, including Riot Games’ withdrawal from a Saudi-backed esports deal in 2020, and prompted gestures of protest such as Team Liquid’s 2022 pledge to donate a portion of Saudi prize winnings to LGBTQ+ causes.

Beyond geopolitical concerns, industry analysts warn that a leveraged buyout of EA could bring its own risks. In such deals, the acquired company typically absorbs the debt, often leading to cost-cutting measures like layoffs or reduced services. While EA’s blockbuster franchises – including FIFA, Madden NFL, The Sims, and Battlefield – generate billions in annual revenue, a private equity-driven restructuring could alter the publisher’s priorities and creative output.

For now, no agreement has been finalized, and both EA and the investor consortium have declined to comment on the reports. Still, news of the talks has already sent EA’s stock up by 15 percent, reflecting investor confidence in the potential transaction despite lingering questions over its long-term impact on the gaming industry.