Video-game giant Electronic Arts (EA) is reportedly in advanced talks to be taken private in a deal that could top US$50 billion (A$76.5 billion), making it potentially the largest leveraged buyout in history.

A consortium including private equity firm Silver Lake, Saudi Arabia’s Public Investment Fund (which already owns a 10% stake in EA) and Jared Kushner’s Affinity Partners are said to be leading the push.

Sources suggest an announcement could come within days. EA’s shares surged nearly 15% last week on the news, closing at a record US$193.35 (A$294.96). The company is now valued at $48.4 billion (A$76 billion).

The talks follow a wave of consolidation in gaming, including Microsoft’s acquisition of Activision Blizzard and Take-Two Interactive’s takeover of Zynga.

Earlier this year, EA cut hundreds of jobs in its third large-scale reduction since 2023. The California-based studio behind EA Sports FC, Madden NFL and The Sims also closed studios while canceling multiple projects such as the new Titanfall game.

Industry analysts say the proposed buyout reflects deeper challenges in gaming.

After a pandemic-driven boom in 2020, growth has slowed, with players increasingly sticking to established titles rather than new releases.

EA itself now earns nearly 75% of revenue from “live-service” games, updated regularly to keep players engaged.

The console market is viewed as mature, with rapid growth becoming unlikely. The recent move may signal that current industry valuations are seen as a peak amid a trend toward slower growth.

Saudi Arabia has been heavily investing in gaming, including esports tournaments and acquisitions, signalling broader ambitions to become a global gaming hub. A buyout of EA would cement that position.