EA May Go Private in $50 bn Buyout By Multinational Investors

At this point, it's secret that EA Games has been in a bit of a rough spot lately, with a recent chain of layoffs resulting in the loss of hundreds of staff and the closure of multiple studios over the last two years. Now, it seems as though EA might have found a lifeline, if a recent report by The Wall Street Journal is to be believed. According to the report, a group of private investors, including Silver Lake and the Saudi Public Investment Fund, may be looking to purchase EA with a $50 billion leveraged buyout. The Saudi PIF already owns 9.4% of EA's shares, so a buyout would not be surprising. The news of a potential buyout deal comes just days after EA launched Skate to a lukewarm reception from PC gamers.

The last time rumors about an EA acquisition were doing the rounds, the company's CEO, Andrew Wilson, was quick to dismiss them and play up EA's successful earnings. Of course, the deal is not yet signed, although an announcement is expected within the next week or two. Theoretically, privatization could help EA streamline company decision-making and remove investor pressure, potentially allowing for more agile moves and interesting game releases. As we discussed late last year, EA isn't the only major publicly traded game studio that is seeking a buyout, with rumors previously spreading about Tencent potentially buying out Ubisoft.