With the participation of Trump's son-in-law, gaming giant EA will "go private," setting a leveraged buyout record with a valuation of $50 billion

Gaming giant EA is in deep negotiations for a potential privatization deal worth up to $50 billion, which could not only become the largest leveraged buyout in history but also signal a significant shift in the global gaming industry landscape.

According to media reports on September 26, EA, known for sports games like FIFA and Madden NFL, is negotiating a privatization deal. Sources cited in the reports indicate that the deal could be announced as early as next week.

If the deal is finalized, its scale would not only make it one of the largest transactions globally in 2025 to date but could also surpass the 2007 privatization of Texas utility company TXU, setting a new record for leveraged buyouts.

The reports noted that the deal is led by a consortium consisting of private equity firm Silver Lake Partners, the Saudi Arabian Public Investment Fund (PIF), and Jared Kushner's investment firm Affinity, with JPMorgan Chase responsible for arranging the financing.

Driven by the news of the deal, EA's stock price surged nearly 15% to a historic high of $193.35 on Friday, pushing the company's market value to approximately $48 billion.

The Acquisition Consortium is Strong

Silver Lake Partners is a private equity firm focused on the technology sector, managing approximately $110 billion in assets and already having investments in the gaming industry.

The firm holds shares in game development software company Unity Software, and EA is a major client of Unity.

The Saudi PIF currently holds about 10% of EA's shares. The fund has raised its investment profile in recent years, including the establishment of the LIV Golf professional golf league to compete with the PGA Tour.

In 2021, PIF established the Savvy gaming division, specifically responsible for acquisitions and investments in gaming and esports.

In 2023, the fund acquired California game publisher Scopely for nearly $5 billion and also holds a 6.5% stake in competitor Take-Two Interactive.

Jared Kushner founded Affinity Partners in 2021, with the company headquartered in Florida and backed by investors including PIF.

(Jared Kushner with his wife Ivanka Trump)

The Largest Leveraged Buyout Deal in History is Imminent

The reports emphasize that if this privatization deal is finalized, it would become one of the largest transactions announced in 2025 to date and could set a record for the largest leveraged buyout (LBO) in history Data shows that the previous largest leveraged buyout record was the acquisition of TXU by several private equity firms for approximately $32 billion in 2007 (excluding assumed debt).

After the 2008 financial crisis, large leveraged buyouts temporarily disappeared due to the poor performance of some major mergers and acquisitions.

In 2021, a consortium of private equity firms spent over $30 billion to acquire the medical supplies company Medline, reigniting market interest.

Today's leveraged buyouts often carry less debt than transactions before the financial crisis.

At the same time, large-scale transactions now typically involve sovereign wealth funds or other large investors, rather than private equity firm consortia, aimed at preventing disagreements among owners regarding company strategy.

EA Performance Recovery Welcomes Acquisition Opportunity

The acquisition negotiations come at a time when the video game industry is experiencing slowed growth.

After explosive growth during the COVID-19 pandemic, the entire industry has cut tens of thousands of jobs over the past three years. EA itself has not been spared, having conducted three major layoffs since 2023.

EA's performance has also experienced fluctuations.

Reports indicate that in early 2025, the company's stock price suffered a sharp decline due to the poor performance of its latest soccer game, "EA Sports FC 25." However, in a recent earnings call, EA stated that its entire product portfolio contributed to "better-than-expected performance."

Currently, Wall Street is closely watching the company's upcoming release of "Battlefield 6" on October 10, which will directly compete with Microsoft's "Call of Duty" series in the shooting game market