Gaming giant Electronic Arts is nearing a landmark $50 billion deal to go private under an investor group led by Silver Lake and Saudi Arabia’s Public Investment Fund, according to a report published Friday by The Wall Street Journal.
The Largest Leveraged Buyout in History
If finalized, the $50 billion acquisition would represent the largest leveraged buyout ever recorded. Under this financial structure, the transaction will be heavily funded through debt financing to take the major publisher off the public market.
Market Response and Stock Surge
Wall Street responded immediately to the acquisition reports. Shares of Electronic Arts jumped 15% on Friday afternoon as investors reacted to the news of the impending buyout deal.
A Powerhouse Portfolio of Gaming Franchises
EA remains one of the video game industry’s premier publishers. The company is best known for its dominant annual sports franchises, including Madden NFL, FIFA, and NBA Live, as well as critically acclaimed original intellectual properties such as The Sims, Battlefield, Need for Speed, and licensed Star Wars titles.
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