Electronic Arts Nears 50 Billion Leveraged Buyout to Go Private

Electronic Arts is nearing a deal to go private in a leveraged buyout that could value the video game publisher at about 50 billion, The Wall Street Journal reported Friday, sending the companys shares sharply higher and briefly halting trading. The potential transaction, which sources told the Journal could be unveiled as soon as next week, would be led by private equity firms including Silver Lake and is reported to include Saudi Arabias Public Investment Fund and Jared Kushners Affinity Partners.

"Discussions on price are still underway but EA could be valued at as much as 50 billion, two of the people said," the Journal reported. Shares rose more than 14 percent on the news, climbing to roughly 193 to 197 per share in late trading, with some accounts putting the gain as high as 17 percent before a temporary halt. Market value estimates cited in reports ranged from about 43 billion before the story to roughly 50 billion after the spike.

If completed, the deal would likely be the largest leveraged buyout in history, surpassing the roughly 32 billion purchase of Texas utility TXU in 2007, according to historical deal figures cited by commentators. Representatives for Electronic...