EA set to go private with $50B deal
Going private could free EA from shareholders' demands but may also bring tighter cost-cutting and more aggressive monetisation.
The gaming industry never sits still, but this one feels like a bombshell. Electronic Arts, the publisher behind FIFA, Madden, Battlefield, and The Sims, is reportedly close to a $50 billion buyout that would take the company private.
EA has been publicly traded since 1990, so seeing it step away from the stock market would be a huge deal. And if the numbers hold, this could become the biggest leveraged buyout in history.
According to the Wall Street Journal, investors led by Silver Lake Technology Management and Saudi Arabia’s Public Investment Fund (PIF) are preparing the bid. EA’s market cap is currently sitting at around $43 billion after a bumpy start to the year, but insiders say the price could hit $50 billion once talks settle.
Unlike Microsoft’s massive $68.7 billion purchase of Activision Blizzard, which was a straightforward acquisition, this deal would be financed largely with borrowed money, with EA’s assets likely backing the debt. Leveraged buyouts like this are rare in gaming, which makes the move even more striking.
Emmanuel Oyedeji
The timing lines up with where EA is at right now. It has had a mixed year, with Skate’s reboot failing to spark much excitement while Split Fiction turned into an unexpected hit. On top of that, Battlefield 6 has shown serious promise, with its open beta pulling in over half a million concurrent players on Steam.
For the investors circling EA, the attraction is obvious. Annual sports franchises like EA Sports FC and Madden NFL are safe money makers, and the company’s live service games keep revenue flowing year-round.
That predictability helps balance out the risks of taking on massive debt. Then there’s Saudi PIF, which has already made waves by becoming Nintendo’s largest outside investor in 2023. Adding EA to its portfolio would give it even more influence over the global gaming scene.
Oluwaseun Bamisile
What all this means for EA’s future is less certain. Going private would free the company from the constant grind of quarterly earnings reports, giving executives more breathing room to plan long-term. But history suggests there’s a flip side. Private equity ownership often comes with cost-cutting, restructuring, and a sharper eye on profitability.
That could mean a stronger focus on reliable franchises and monetisation strategies, while experimental or riskier projects might get pushed aside. For players, though, day-to-day experiences may not shift immediately. Battlefield will still release, Madden and EAFC will continue to dominate sports gaming, and The Sims will continue to evolve.
