Video game giant Electronic Arts (EA) is in advanced discussions with private equity firms over a deal that could see the company taken private at a valuation of around $50 billion, according to people familiar with the matter. If completed, the move would mark one of the largest leveraged buyouts in the technology and entertainment sectors.
Deal under consideration
Talks are said to involve multiple private equity groups, though no agreement has yet been finalised. Sources suggest that the negotiations centre on a structure that would allow EA to continue operating independently while shifting ownership from public shareholders to a consortium of private investors.
Why now?
The potential buyout comes amid heightened competition and consolidation in the gaming industry. Companies such as Microsoft and Sony have expanded aggressively through acquisitions, while new entrants in mobile and cloud gaming are reshaping the market. A move to go private could give EA greater flexibility to restructure and invest outside the scrutiny of quarterly earnings.
Industry context
EA, best known for its FIFA football franchise, The Sims, and Battlefield, has faced both successes and challenges in recent years. While its sports titles deliver consistent revenue, it has struggled to replicate that reliability across other major franchises. The rise of subscription services and free-to-play models has also pressured traditional publishing approaches.
Investor reactions
Public market investors may see a premium in any buyout offer, given EA’s current market capitalisation hovers below the reported $50 billion valuation. Analysts say the move could signal confidence in the company’s long-term prospects, but some warn that the scale of financing required could test private equity appetite.
What happens next
If the deal proceeds, it would rank among the most significant take-private transactions in the entertainment sector. Observers will be watching closely to see which private equity groups participate, how the financing is structured, and whether EA’s leadership remains intact under new ownership.
REFH – Newshub, 27 September 2025
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