EA is reportedly about to reach a $50 billion privatization deal, which is expected to be the largest leveraged acquisition ever.
This could be a major shift for publishers of Madden Football and Battlefield, with details coming from the Wall Street Journal.Sources in the media said investors include private equity firm Silver Lake and Saudi Arabia's Public Investment Fund (PIF).It is reported that Affinity Partners, an investment company led by Donald Trump's son-in-law Jared Kushner, is also involved.
If this so-called transaction is officially finalized, an announcement may be issued as early as Monday.Before the Wall Street Journal report was released, EA's market value was about $43 billion.Since the news of the trend of privatization first came out, its market value has soared nearly 15%, reaching about US$48 billion.
A $50 billion deal that delisted EA from the public stock exchange will be about $18 billion higher than the $31.8 billion acquisition of Texas electric power company TXU in 2007.If the EA deal is reached, it is expected to become the largest leveraged acquisition ever (without considering inflation).
If PIF is allegedly involved in the acquisition, Saudi Arabia will further consolidate its deep roots in the gaming industry.Currently, the fund holds 10% of EA's shares; in 2022, it also became one of Nintendo's largest shareholders, with a shareholding ratio of 5.01%.Earlier this year, Pokémon GO developer Niantic also announced that it had sold its game library to mobile game developer Scopely, which is controlled by Savvy Games and PIF.
Last month, Ubisoft was opposed after announcing the launch of the "Assassin's Creed" DLC set in Saudi Arabia.The content was released from a report by French media Le Echo, which disclosed details of a deal between Ubisoft and PIF.Ubisoft employees also expressed concerns about working with the controversial entity, GameFile reported.
Meanwhile, Yinhu Capital holds part of the equity of game engine technology company Unity.If the transaction with EA is reached, PIF, Affinity Partner Capital and Silver Lake Capital will become its new owners as EA becomes privatized.
The publisher's recent games include a number of EA Sports' works, such as "EA Sports FC 26", "Madden Football NFL 26", and new works in the "Skateboard" series.Next month, DICE, a developer under EA, will launch "Battlefield 6", a game that is regarded as a particularly important node in the series and EA.
