EA Reportedly Nearing $50 Billion Deal to Go Private

Electronic Arts (EA), one of the world’s biggest video game publishers, is reportedly on the verge of a seismic transformation. According to sources cited by The Wall Street Journal, the company is close to finalizing a $50 billion leveraged buyout that would see it leave the stock market and go private.

If confirmed, it would be the largest deal of its kind in history, surpassing the $31.8 billion takeover of Texas utility TXU back in 2007.

The investor group is said to include Silver Lake, a private equity firm with experience in the gaming sector, Saudi Arabia’s Public Investment Fund (PIF), and Affinity Partners, an investment company headed by Jared Kushner, former U.S. President Donald Trump’s son-in-law. An announcement could come as early as Monday, though EA has not publicly commented on the matter. The rumor alone has already shaken the stock market, sending EA’s market value up nearly 15% to around $48 billion.

For Saudi Arabia, the deal represents a continuation of its aggressive expansion into gaming and entertainment. Through PIF, the kingdom already owns about 10% of EA and has steadily invested in global gaming giants. In 2022, it became one of Nintendo’s largest external shareholders and has also acquired stakes in other companies like Scopely and Niantic. Critics argue this strategy, part of the Saudi Vision 2030 economic plan, is less about games and more about influence, raising concerns about human rights issues and cultural interference.

Silver Lake, meanwhile, has ties to Unity Technologies, the widely used game engine, and would bring its own vision of restructuring. Affinity Partners’ involvement, given Kushner’s controversial history and financial dealings in the Middle East, has already fueled debates about political entanglements bleeding into the gaming space. Many players fear that the buyout would prioritize investor agendas over creative ambition, potentially reshaping franchises like Battlefield, The Sims, or Mass Effect in ways fans may not welcome.

At the same time, some analysts see potential upside. Going private could reduce EA’s constant pressure to deliver quarterly profits for shareholders, theoretically giving developers more freedom to focus on long-term quality rather than short-term financial goals. Still, the risks of debt from a leveraged buyout cannot be ignored. Industry observers point to Toys R’ Us as a cautionary tale – a company that collapsed under the weight of acquisition debt despite strong sales.

EA’s current lineup adds weight to the timing of the deal. EA Sports FC 26 and Madden NFL 26 are already on shelves, while DICE is preparing to release Battlefield 6, which has been hyped as a crucial moment for the franchise. How such a massive ownership change might impact those games – or the culture of EA’s studios – remains to be seen. For fans and critics alike, the idea of EA being steered by Saudi Arabia’s fund, a U.S. political insider, and a powerful private equity firm is both fascinating and deeply unsettling.