Electronic Arts in advanced talks for  billion go-private deal

Electronic Arts in advanced talks for $50 billion go-private deal

Electronic Arts (EA) is undergoing high consultation to move privately on transactions worth approximately $50 billion. Following the announcement, the video game publisher stocks skyrocketed, reaching a high of $197.33, surpassing 14% today.

Groups of interested investors, including Saudi Arabia’s public investment fund and private equity firm Silver Lake, are engaged in discussions with the electronic arts. The transaction may be confirmed to the public as soon as next week.

After the announcement, today’s electronic art stocks will be collected at over 15%.

Wall Street Journal It has been reported Today, the $50 billion deal to become Electronic Arts private is marking the largest leveraged buyout ever. As that goes on, the transaction will surpass current records held by TXU Energy. This was worth $45 billion in 2007.

The video game publisher is based in Redwood City, California and is best known for its sports franchise, the Madden NFL and the FC Soccer Series, which was previously branded as FIFA. Titles such as Sims and The Battlefield series are also included in EA’s portfolio.

Electronic Arts stocks today exceeded 15% at $197.33 in the last 24 hours since its announcement. The stock YTD is up to 32.2%, with a one-year range of between $115.21 and $197.33. The company’s market value has increased to $48.28 billion, with an average daily trading volume of about $42 billion to $2.66 million. For the longest part of the year, Electronic Arts stocks previously maintained the $127-$130 range Meeting Up to $193.3 in today’s publication.

The video game publisher launched College Football 26 in July following the success of last year’s edition. College Football 25 has become one of the bestselling releases of 2024. The first trailer for Battlefield 6 was also revealed, with plans for a release for the current fiscal year. The release may offer positive outlook as the company plans to move its franchise following last year’s edition market flop.

The Electronic Arts game struggled financially in the first half of this year despite posting strong titles. Latest 3rd quarter, 2025 financial results iRelease in February showed that the company recorded a 6.4% decline in revenue from the previous year. The company believes it has declined due to declining sales of FC 25 games and new Dragon Age titles. It added that there was uncertainty in the consumer spending section of its core game amid a challenging market. EA Sports forecasts second quarter results below Wall Street estimates, further reducing investors’ confidence in stock performance.

Saudi Pif and Silver Lake are circulating EA’s privatization deal

To improve the desires of stock investors, the video game publisher has announced plans to buy back $1 billion in stock as part of its $5 billion approval. The buyback was expected to bring in at least $2.5 billion.

According to Investgame researchsince 2018, at least $21 billion has been directed to the gaming sector by private equity companies and global wealth funds, with 68 transactions recorded over the period. This study revealed that influx is supported by live service models and digital storefronts.

In line with that trend, Saudi Arabia’s public investment fund and Silver Lake have been captured as stakeholders in contracts to acquire EA Sports. Other mentions include Dell Technologies, Endeavor, and AMC Entertainment.

Elsewhere, Microsoft acquired Activision Blizzard for $68.7 billion and acquired Take-Two Interactive I’ve got it Zynga is trading for $12.7 billion. Savvy Games Group purchased a $4.9 billion Scopely in its private equity section, while CVC invested $1.3 billion in Dream Games. As trade continues, EA privatization marks the biggest deal in the global gaming industry.

Join Bybit now and claim a $50 bonus in minutes

Leave a Reply

Your email address will not be published. Required fields are marked *