Videogame maker EA in advanced talks to go private at roughly $50 billion valuation

By Milana Vinn

Sept 26 (Reuters) - Electronic Arts EA.O, the videogame publisher behind titles such as "FC" and "Battlefield", is in advanced talks to go private at a valuation of roughly $50 billion, according to sources familiar with the matter.

A group of investors including private equity firm Silver Lake, Saudi Arabia's PIF and Jared Kushner's Affinity Partners could unveil a deal for the publisher as soon as next week, the sources said on Friday. If it goes through, the deal would mark the largest ever leveraged buyout in history.

Shares of EA were up more than 15% in afternoon trading.

The gaming industry has been grappling with soaring development costs and intensifying competition, while trying to meet high fan expectations amid a broader drop-off in discretionary consumer spending.

EA, which has a market valuation of over $42 billion, had forecast quarterly net bookings below Wall Street expectations in July.

But the company is betting on "Battlefield 6", the latest installation in the popular shooter game title, to boost bookings and challenge Activision Blizzard's "Call of Duty" franchise. Set to launch in EA's current fiscal year, "Battlefield 6" is expected to sell millions of copies.

Large-cap M&A is also rebounding in 2025 as boardroom confidence, consolidation logic and cheaper capital are finally lining up again.

Goldman Sachs president John Waldron had said earlier in the week CEOs and boards were "stepping out" after a two-year lull, with U.S. megadeals leading the charge and expected Fed rate cuts easing the cost of capital, conditions that make it easier to pursue scale, synergies, and strategic repositioning through mergers rather than organic investment alone.

EA, Affinity Partners and PIF did not immediately respond to Reuters' requests for comment. Silver Lake declined to comment.

The publisher had launched "College Football 26" in July, hoping to build on the success of last year's edition, which became one of the best-selling titles of 2024.

The Wall Street Journal had first reported on the deal talks earlier on Friday.

Silver Lake has long been known for major technology buyouts and is one of the largest tech-focused private equity firms. It had recently acquired a majority stake in Intel's INTC.O Altera for $4.46 billion.

Meanwhile, PIF, as part of Saudi's "Vision 2030" strategy, has diversified beyond oil, with big investments in gaming and other sports, among other sectors.

Affinity Partners, founded by U.S. President Donald Trump's son-in-law Kushner, has investments from funds in Saudi Arabia, Qatar and the United Arab Emirates.