Video game giant Electronic Arts (EA) is on the verge of a private acquisition – which appears to be the largest leveraged buyout of all time, according to a report by The Wall Street Journal.
A group of investors, including the private equity firm Silver Lake and Saudi Arabia’s Public Investment Fund, is expected to unveil an acquisition deal for EA, best known for its sports games. EA owns franchises including the soccer game FIFA (recently renamed FC) and the football game Madden NFL, along with other titles such as The Sims. According to the report, EA’s current market value is about $43 billion. Negotiations are still underway regarding the acquisition price, but sources said EA’s value could reach $50 billion.
If the deal goes through, it is likely to rank as the largest leveraged buyout ever (not adjusted for inflation). The largest such acquisition to date was the purchase of Texas-based utility company TXU in 2007 by a group of private equity firms for about $32 billion, excluding debt transfers.