Reuters: Electronic Arts Eyes $50B Go-Private Deal Amidst Gaming Consolidation

Electronic Arts (EA), the video game publisher of popular franchises such as "FC" and "Battlefield," is reportedly in advanced discussions to be acquired in a private equity deal valued at approximately $50 billion, according to Reuters. If finalized, this would be the largest leveraged buyout in history. A consortium of investors, including Silver Lake, Saudi Arabia's Public Investment Fund, and Jared Kushner's Affinity Partners, is reportedly behind the potential offer. An official announcement could be made as early as next week. News of the potential deal drove EA's stock price up by roughly 15% at market close. EA is currently relying on its core sports and action shooter properties to navigate a slowing video game market and increasingly selective consumer base, with upcoming titles like "Battlefield 6" and "FC 26" projected to generate significant sales. This potential acquisition mirrors the ongoing trend of consolidation within the gaming industry, highlighted by recent acquisitions of Activision Blizzard and Zynga. D.A. Davidson & Co. analyst Wyatt Swanson commented, "EA does make sense as an acquisition target – the cash flows are fairly consistent, and EA's annualized titles make for predictable revenue/profitability." Furthermore, this development coincides with a resurgence in large-cap mergers and acquisitions in 2025. Goldman Sachs president John Waldron has observed a growing sense of confidence among CEOs and corporate boards following a two-year decline in dealmaking activity.