Electronic Arts Nears $50 Billion Buyout by Saudi Arabia and Jared Kushner's Firm
In a move that could reshape the video game landscape, Electronic Arts (EA)—the studio behind blockbuster franchises like Madden NFL, FIFA (now EA Sports FC), and The Sims—is reportedly close to finalizing a $50 billion deal to take the company private. According to a report from The Wall Street Journal on Friday, the buyout is being spearheaded by private equity heavyweight Silver Lake, alongside Saudi Arabia's Public Investment Fund and Jared Kushner's investment firm, Affinity Partners.
This potential transaction, valued at around $50 billion including debt, would mark the largest leveraged buyout in history, surpassing even the record-breaking $45 billion takeover of semiconductor giant Broadcom in 2009. For gamers and industry watchers alike, it's a reminder of how quickly the forces of global finance are converging on the entertainment sector. EA, a publicly traded company since 1989, has long been a staple in the gaming world, with its sports titles alone generating billions in annual revenue.
The involvement of Saudi Arabia's sovereign wealth fund underscores the kingdom's aggressive push into entertainment and tech as part of its Vision 2030 diversification strategy. Affinity Partners, founded by former U.S. President Donald Trump's son-in-law Jared Kushner after leaving the White House, adds a layer of intrigue with its focus on Middle East investments. Silver Lake, known for tech deals like Dell's go-private saga, brings the financial muscle to make this blockbuster possible.
If the deal goes through, EA would shift from the scrutiny of public markets to a more private structure, potentially allowing for bolder strategic moves amid a turbulent industry facing layoffs, studio closures, and the rise of mobile and cloud gaming. For employees and fans, it raises questions about creative freedom and future titles—will we see more experimental projects, or a sharper focus on proven cash cows?
As negotiations advance, all eyes are on how this deal might influence other gaming giants like Activision Blizzard or Take-Two Interactive. For now, EA remains tight-lipped, but the gaming world is buzzing with speculation. Read the full original article from Mashable for more details.