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EA in Advanced Talks on $50 Billion Take-Private Backed by Silver Lake and Saudi PIF

Such a deal would be the largest leveraged buyout on record, according to the Wall Street Journal.

Overview

  • Reports say the buyer group includes Silver Lake, Saudi Arabia’s Public Investment Fund and Jared Kushner’s Affinity Partners, with terms still being negotiated.
  • Sources cited across outlets indicate an agreement could be unveiled as soon as next week, though the companies have not confirmed the talks.
  • EA shares were briefly halted and then jumped roughly 14–16%, touching about $193 a share and lifting the market value toward the reported valuation.
  • The potential price discussed is up to about $50 billion versus a pre-report market capitalization in the low-to-mid $40 billions.
  • If completed, the leveraged structure would likely set a new record for LBOs, and analysts note such deals often bring heavier debt loads and cost discipline at the target.