Electronic Arts in 500 Billion Dollar Private Equity Deal Talks

Electronic Arts (EA), the prominent gaming company behind popular titles such as FIFA and Madden NFL, is in advanced negotiations for a potential 500 billion dollar private equity deal. This transaction, if finalized, would not only be one of the largest leveraged buyouts in history but also indicate a significant shift in the global gaming industry landscape.

The acquisition is being spearheaded by a consortium that includes Silver Lake, the Saudi Public Investment Fund (PIF), and Affinity Partners, an investment firm founded by the former son-in-law of the . The deal is anticipated to be announced as early as next week, with Morgan Stanley managing the financing arrangements.

The consortium's financial strength is considerable. Silver Lake, a private equity firm focused on technology, manages approximately 110 billion dollars in assets and has a notable presence in the gaming industry, holding shares in Unity Software, a key client of EA. The PIF, which already owns about 10% of EA, has been enhancing its investment profile, notably through the establishment of the LIV Golf professional golf league in competition with the PGA Tour. The PIF's Savvy Games division, established in 2021, is dedicated to acquisitions and investments in the gaming and esports sectors. In 2023, the PIF acquired Scopely, a California-based game publisher, for nearly 5 billion dollars and holds a 6.5% stake in Take-Two Interactive, a competitor.

Affinity Partners, founded in 2021 and based in Florida, has received investments from the PIF and other backers. The firm is known for its strategic investments in various sectors, including technology and entertainment.

The potential private equity deal for EA is set to be one of the largest transactions of 2025 and could establish a new record for the largest leveraged buyout in history. The previous record was set in 2007 when a group of private equity firms acquired TXU, a Texas utility company, for approximately 32 billion dollars, excluding debt. Following the 2008 financial crisis, large-scale leveraged buyouts became less common due to the poor performance of some high-profile mergers. However, in 2021, a private equity consortium acquired Medline, a medical supply company, for over 30 billion dollars, reigniting interest in the market. Modern leveraged buyouts typically involve less debt than those before the financial crisis and often include sovereign wealth funds or other large investors to mitigate strategic disagreements among owners.

The timing of this potential acquisition coincides with a period of slowed growth in the video game industry. Following a surge in popularity during the COVID-19 pandemic, the industry has seen significant job cuts over the past three years, with EA itself conducting three major rounds of layoffs since 2023. EA's financial performance has also been volatile. In early 2025, the company's stock took a hit due to the underperformance of its latest football game, EA Sports FC 25. However, in recent earnings calls, EA reported better-than-expected performance across its product portfolio. The industry is now closely watching the release of EA's Battlefield 6, scheduled for October 10, which will compete directly with Microsoft's Call of Duty series in the shooter game market.