What We Learned This Week

Largest LBO in History: Electronic Arts is reportedly nearing a nearly $55 billion take-private deal, one that would mark the largest leveraged buyout in history. The structure, a classic private-equity strategy, relies on heavy borrowing with the acquired company’s cash flows paying down debt over time. The rumored backers include Saudi Arabia’s Public Investment Fund (already a ~10% EA shareholder) and private equity firm Silver Lake, which was also a key player in Dell’s landmark take-private. For PIF, the move aligns with its growing footprint in gaming and sports (alongside stakes in the makers of Pokémon Go and Monopoly Go), and billions poured into developing the LIV Golf Tour. EA’s powerhouse sports franchises like Madden and FIFA fit neatly into that playbook.

What remains unclear is what the investors hope to unlock by taking EA private. The company has lagged broader market performance somewhat in recent years, and a few of its flagship sports titles have hit some turbulence. That said, this is far from a broken story in urgent need of repair. Outside of sovereign wealth funds, mega-LBOs of this scale have been rare since the financial crisis, given the equity capital required to make them feasible. EA’s shares jumped 15% on the report, lifting its market cap closer to $50 billion. Whether the deal closes or not, it highlights how sovereign-backed capital is reshaping the upper end of the private equity landscape, and it may spark a wave of renewed interest in larger format deals.

Boeing Winning Over the FAA: Boeing got another boost this week as the FAA said it will again allow the company to issue airworthiness certificates for its 737 and 787 jets. The regulator had stripped that authority after the 737 MAX crashes in 2019 and later extended the restriction to the 787 in 2022 following production defects. Since then, the FAA alone has handled certifications. Now, in a phased handoff, Boeing and the FAA will alternate weeks, signaling growing confidence in Boeing’s manufacturing and safety improvements. The company still needs FAA approval before raising production rates, but regaining this responsibility marks meaningful progress in restoring trust.

Momentum is also building on the commercial side. Last week, Turkish Airlines and Norwegian Air placed sizable new orders for both 737s and 787s, underscoring sustained global demand. Trade dynamics could add another tailwind as countries weigh U.S. imports to help balance deficits, potentially tipping the scales against European rival Airbus. Boeing’s stock is up nearly 30% year-to-date, though it still trades at less than half its pre-MAX crisis levels. If the company can avoid further missteps, the foundation for a real recovery may be taking shape.