Electronic Arts Reportedly Preparing $50 Billion Buyout, Could Go Private

Electronic Arts (EA) might soon leave the stock market. According to The Wall Street Journal, the gaming giant is preparing a massive $50 billion buyout that would take the company private — the largest leveraged buyout in history if completed.

The deal is reportedly backed by a group of major investors, including Silver Lake, the Saudi Arabian Public Investment Fund (PIF), and others. News of the potential buyout has already sent EA’s stock price soaring by 15%, with an official announcement expected as early as next week.

If the agreement goes through, EA’s current shareholders — including individual retail investors — would receive payouts for their shares. Taking a company private is often seen as a way for leadership to focus on long-term strategy without the short-term pressures of public markets, particularly when executives believe the company is undervalued.

Saudi Arabia’s involvement is significant. Its PIF has been investing heavily in the gaming industry as part of the country’s Vision 2030 initiative, which aims to transform Saudi Arabia into a global hub for gaming and esports. The nation has pledged $38 billion toward gaming-related investments by the end of the decade.