
EA to abandon Wall St battlefield for US$50bn payday

Electronic Arts is lined up to go private in what could be Wall Street's largest leveraged buyout in history from Silver Lake, Saudi Arabia's Public Investment Fund and Jared Kushner's Affinity Partners finalising the takeover, which could drop as early as next week. Shares in the gaming giant rocketed 15% on Friday when news broke, and at US$50 billion, this smashes TXU Energy's previous go-private record from 2007 and values EA at a chunky premium to its current US$43 billion market cap. But why are these financial heavyweights throwing such serious coin at a video game outfit? Maybe it's because EA isn't just selling titles, it's providing a huge income-generating subscription service too. Top titles such as FIFA, Madden NFL, and The Sims are played by millions of punters that happily pay for the privilege year after year, with the company banking US$7.58 billion in FY 2025 takings at a steady 3% growth. Publishers now trade at 13.8x EBITDA multiples, while mobile developers languish at 4.7x.The buyersGlobal equity fund Silver Lake knows tech acquisitions inside out (they took Dell private) and Saudi Arabia's PIF is diversifying beyond oil at breakneck speed, having already dropped US$4.9 billion on Scopely last yea