The proposed transaction is being led by private-equity firm Silver Lake and Saudi Arabia’s Public Investment Fund (PIF), with an announcement possible as early as next week. Shares of EA surged more than 14% on the news.
Neither EA, Silver Lake, nor the PIF immediately responded to requests for comment.
EA, best known for its blockbuster sports franchises, has faced mounting pressure amid softer consumer spending on its core titles. In July, it launched College Football 26, following the success of last year’s edition, which ranked among 2024’s best-sellers. The company also unveiled the first trailer for Battlefield 6, a make-or-break release aimed at reviving the franchise after its predecessor underperformed. The new title is expected to launch this fiscal year, with analysts forecasting multi-million unit sales.
Despite these bets, EA has guided for second-quarter net bookings below Wall Street expectations, reflecting the broader challenges in the gaming sector.
The potential $50 billion valuation represents a sharp premium to EA’s current market capitalization of about $42 billion. The Wall Street Journal first reported news of the deal talks.