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Video game maker Electronic Arts – known for The Sims, Maddel NFL, Plants vs. Zombies and more – could be going private soon with a valuation of roughly $50 billion.
The possible deal, first reported by The Wall Street Journal, would mark the largest ever leveraged buyout in history. A group of investors including private equity firm Silver Lake, Saudi Arabia's Public Investment Fund and Jared Kushner's Affinity Partners could unveil a deal for the publisher as soon as this week, sources told Reuters on Friday.
Shares of Electronic Arts, better known as EA, closed around 15% higher on Friday. The deal to take EA private would also mark further consolidation within the industry, after titans such as Activision Blizzard and Zynga were swooped up by even larger firms, further reducing the number of publicly listed video game companies.
EA is headquartered in Redwood City, Calif. The currently public company was founded in 1982, according to its website.
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Visitors play EA Sports FC25 at the Gamescom computer gaming fair on the opening day in Cologne, Germany, on Wednesday, Aug. 21, 2024. (Alex Kraus/Bloomberg / Getty Images)
"We create stories and deliver amazing experiences that resonate with audiences around the world and make an impact in the communities where we live, work and play," EA's website says.
"Our values and vision as a global company continue to drive us to create a welcoming workplace, foster inclusive communities, invest in the next generation of innovators and artists, and progress our environmental initiatives," it continues.
Gxstocks reached out to EA for comment on the potential buyout, but they did not immediately respond.
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EA Sports FC 25 displayed on a TV screen and a DualSense controller are seen in this illustration photo taken in Krakow, Poland on September 30, 2024. (Jakub Porzycki/NurPhoto / Getty Images)
The company's most recent earnings results said its fiscal year had started out "strong."
"We delivered a strong start to FY26, outperforming expectations ahead of what will be the most exciting launch slate in EA’s history," Andrew Wilson, CEO of Electronic Arts, said in a statement. "From deepening player engagement in EA SPORTS to gearing up for Battlefield 6 and skate., we’re scaling our global communities and continuing to shape the future of interactive entertainment."
Electronic Arts headquarters in Redwood City, California, US, on Tuesday, July 18, 2023. (David Paul Morris/Bloomberg / Getty Images)
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Net revenue for the company's fiscal year 2026 first quarter, which ended on June 30, showed its net revenue was $1.671 billion.
EA's next earnings conference call is set for October 28.
Reuters contributed to this report.
