Electronic Arts Nears $50 Billion Buyout in Historic Deal

Electronic Arts Inc. is in advanced discussions for a $50 billion Leveraged buyout that would rank as the largest privatization in corporate history. The videogame publisher's shares surged 15% to a record $193.35 following reports of negotiations with a consortium including Silver Lake, Saudi Arabia's Public Investment Fund, and Affinity Partners.

The potential transaction marks a watershed moment for the gaming industry, reflecting growing institutional interest in interactive entertainment assets. Saudi Arabia's PIF, which already holds a 10% EA stake, has been aggressively expanding its gaming portfolio through acquisitions and investments.

Market reaction was immediate and pronounced, with EA's stock leap demonstrating investor confidence in the deal's prospects. The buyout talks emerge after EA delivered 27% returns over five years - substantial gains that nonetheless trailed the S&P 500's 97% advance during the same period.