The largest deal the gaming industry has ever seen has moved a crucial step forward. The EU Commission has given antitrust approval for the planned acquisition of Electronic Arts by a consortium led by Saudi Arabia's Public Investment Fund (PIF). The authority's reasoning: the deal raises no relevant competition concerns.
As a reminder: EA had already agreed to the acquisition last September. Alongside the PIF, the investment firm Silver Lake and Affinity Partners, Jared Kushner's investment vehicle, are also part of the consortium. Upon completion of the deal, the PIF is set to hold approximately 93.4 percent of EA. Looking at the figures, it quickly becomes clear why the deal is causing such a stir across the industry: At around $55 billion, it is by far the largest leveraged buyout ever, not just in the gaming sector.
However, the deal isn't fully complete yet. In addition to the antitrust clearance now granted, a separate review is currently underway under the EU Foreign Subsidies Regulation, which aims to clarify whether state aid from non-EU countries could distort fair competition. A decision on this is expected by July 30. Only once this hurdle has also been cleared can the sale be finalized.
For players, the key question will likely be what the new Saudi majority owner means for brands like EA Sports FC, Battlefield, or Apex Legends. Officially, EA emphasizes that there should be no immediate changes to operations or studio structure. Nevertheless, critics view the deal skeptically: Saudi Arabia's investments in the gaming industry have been criticized for years, as the kingdom is accused of human rights violations and so-called 'sportswashing,' where multi-billion-dollar investments are allegedly used to polish the country's international image.
We will continue to follow the story and report back once the EU's subsidy review is complete and the deal is finalized.
Source: GamesRadar+, Game Developer
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