Video game publisher Electronic Arts, Inc. (NASDAQ: EA) shares climbed following a report that the company is close to finalizing a plan to go private in what could become the largest leveraged buyout ever.
EA stock is climbing. See the real-time price action here.
The $50 Billion Deal
Investors involved include the private-equity firm Silver Lake and Saudi Arabia’s Public Investment Fund, with an announcement potentially coming as early as next week, according to the Wall Street Journal.
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EA is widely known for its franchises such as FC (formerly FIFA), Madden NFL, The Sims and other popular series.
The California-based company currently has a market capitalization of approximately $43 billion, although discussions suggest a potential valuation of up to $50 billion, two people familiar with the talks revealed.
If the deal is completed, it would top all previous leveraged buyouts on record, without adjusting for inflation.
The largest deal to date occurred in 2007, when energy company TXU was acquired by private-equity groups for approximately $32 billion, excluding debt.
‘Most Exciting Launch Slate in EA’s History’
In July, EA posted net bookings of $1.298 billion, topping Wall Street’s estimate of $1.25 billion, according to Benzinga Pro.
EA credited broad strength across its portfolio, including EA Sports titles, Apex Legends and legacy franchises, for the better-than-expected performance.
CEO Andrew Wilson said the company “delivered a strong start to FY26, outperforming expectations ahead of what will be the most exciting launch slate in EA’s history.”
Gaming Stocks Popping
EA Price Action: Electronic Arts shares were up 14.45% at $192.65 on Friday afternoon, according to Benzinga Pro.
Other gaming stocks, Take-Two Interactive Software, Inc. (NASDAQ: TTWO) and Roblox Corp. (NYSE: RBLX), also popped on the news, trading 2.89% and 1.3% higher, respectively.
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