Electronic Arts Stock Pops on Report Videogame Maker Is Close to Going Private

EA stock jumped on report its close to a deal to go private. (Martin Lelievre / AFP / Getty Images)

Electronic Arts stock jumped on Friday after The Wall Street Journal reported that the videogame maker is close to making a deal that would take it private.

The Journal reported that a group of investors that includes private-equity firm Silver Lake, Saudi Arabia’s PIF, and Jared Kushner’s investment firm Affinity Partners are nearing a deal with EA—the videogame maker for the Madden NFL a nd Battlefield series—to take it private, citing people familiar with the matter.

Barron’s has reached out to EA, Silver Lake, and Saudi Arabia’s PIF for comment.

EA currently has a market capitalization of about $42 billion. The Journal reports that while discussions of a price are still ongoing, EA could be valued at around $50 billion.

Shares of EA soared 15% to $193.35 and closed at a new high, according to Dow Jones Market Data. The stock was also the best performer in the S&P 500 on Friday.

EA stock has performed well this year as Wall Street bets on the success of upcoming videogame releases. Specifically, fans and investors are looking forward to the release of Battlefield 6 on Oct. 10, which has already received positive feedback from people who got early access to the first-person shooter game.

EA also competes with videogame makers like Take-Two Interactive Software and Nintendo . But Wall Street has been hopeful that the delayed release of Take-Two’s Grand Theft Auto VI could lead to more demand for Battlefield 6.

“We expect shares of EA to respond positively following its expected release of Battlefield 6 on Friday, October 10,” analysts at Citi wrote in a research note that was published before The Journal report. These analysts rate EA as Neutral with a $173 price target, but put a 30-day positive catalyst watch on the shares on Thursday.

Write to Angela Palumbo at angela.palumbo@dowjones.com