EA Reportedly Considers $50 Billion Private Buyout
The report states that EA is weighing a private buyout option worth $50 billion. According to The Wall Street Journal, a few weeks ago, it was reported that EA was on the verge of going private with buyout financing provided by a consortium of private equity investors, including Saudi Arabia's Public Investment Fund and Silver Lake.
If successful, this would become the largest leveraged buyout in history. Following the report by The Wall Street Journal, shares of EA soared nearly 15%.
Still A Wait-And-See Situation
Details regarding an imminent conclusion of the deal are quite scarce, and prospects for its completion remain dim. Several high-profile deals involving Saudi Arabia's investment in the video game industry have fallen away at the final moment.
This is not the first time EA has been talked about as a takeover target. In 2023, there were rumors that Disney was in talks to acquire EA, but this did not pan out, with the main reason being Disney CEO Bob Iger's reluctance to make any significant investment in the gaming industry.
Potential Impact on Video Gaming Industry
If the buyout goes ahead, it would represent a huge injection of capital into the gaming industry, with one of the largest developers and publishers being made private. What EA's longer-term plans for its development studios and key franchises like Battlefield, FIFA (now EA Sports FC), and Apex Legends will be shall be seen in the coming years.
For the moment, neither EA nor the alleged investors have put an official stamp on any details regarding a potential transaction.
