Electronic Arts Negotiates $50 Billion Deal to Go Private

Mexico City, Mexico — Videogame maker Electronic Arts is reportedly in advanced talks to go private at a valuation of around $50 billion, according to a source familiar with the negotiations. The potential deal could be announced as early as next week and involves a group of investors, including private-equity firm Silver Lake and Saudi Arabia’s Public Investment Fund.

As news of the negotiations broke, Electronic Arts’ shares surged more than 14%. Despite the market excitement, Electronic Arts, Silver Lake, and the Public Investment Fund did not immediately respond to requests for comment from Reuters.

Earlier this year, EA launched “College Football 26” in July, aiming to replicate the success of the previous year’s edition, which was among the best-selling games of 2024. The company also revealed the first trailer for the highly anticipated “Battlefield 6,” hoping to rejuvenate the franchise after its last release did not meet fan expectations. Analysts anticipate that “Battlefield 6” will be released during EA’s current fiscal year and will potentially sell millions of copies.

However, Electronic Arts is currently facing challenges; its second-quarter net bookings missed Wall Street projections and are being impacted by uncertain consumer spending in a tough economic climate. The Wall Street Journal was first to report on the talks regarding EA going private.