PIF-EA Deal Approved
EU Commission Approves Saudi PIF's $55 Billion Electronic Arts Acquisition, Foreign Subsidies Review Continues
Anonymous
Key Points
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The European Union is reviewing the deal under the Foreign Subsidies Regulation (FSR), with a decision due by July 30, signaling potential scrutiny beyond standard antitrust checks.
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Jared Kushner's Affinity Partners is part of the investor consortium backing the $55 billion acquisition, alongside Silver Lake, underscoring notable U.S. investment backing.
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The deal has been described as the largest leveraged buyout in history, highlighting its size and significance in the private equity landscape.
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Saudi Crown Prince Mohammed bin Salman has a well-known personal interest in gaming—reported as a fan of Call of Duty—illustrating how gaming resonates at the highest levels of Saudi leadership.
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The EU’s review followed a standard merger procedure and emphasizes the transaction’s focus on video game production, distribution, and e-sports events.
The European Commission has approved Saudi Arabia's Public Investment Fund (PIF) takeover of Electronic Arts (EA) for about $55 billion, clearing a major regulatory hurdle for what would be the largest leveraged buyout in history. The deal gives PIF a 93.4% stake in the gaming giant behind EA Sports FC, FIFA, and Madden, according to OpenCritic and Insider Gaming.
The Commission found the deal unlikely to harm competition in gaming markets under standard EU merger rules. But regulators are still reviewing it under the Foreign Subsidies Regulation (FSR) — a separate check on whether non-EU government money could distort competition — with a decision due by July 30, GameDev.net reported.
How the $55 Billion Deal Is Structured
The acquisition is funded by roughly $36 billion in equity from the investor group and $20 billion in debt arranged by JPMorgan Chase. Alongside PIF, private equity firm Silver Lake and Jared Kushner's Affinity Partners are key backers, according to OpenCritic. That mix of Gulf sovereign wealth and prominent U.S. investors makes the consortium unusual even by megadeal standards.
EA is expected to be delisted from Nasdaq once the deal closes. The company will remain headquartered in Redwood City, California, and current leadership will stay in place, Insider Gaming reported. PIF would hold a 93.4% ownership stake, giving Saudi Arabia near-total control of one of the world's biggest game publishers, according to Sims Community Info.
Saudi Arabia's Gaming Ambitions Drive the Push
The acquisition fits squarely inside Saudi Arabia's Vision 2030 plan, which aims to diversify the country's economy beyond oil. Gaming and esports are a big part of that strategy. Saudi Crown Prince Mohammed bin Salman is reportedly a fan of Call of Duty, showing that interest in gaming reaches the very top of Saudi leadership, according to DualShockers.
EA's franchises make it a prime target. EA Sports FC — rebranded after EA lost the FIFA license — still attracts hundreds of millions of players worldwide. Owning EA gives PIF deep roots in global sports gaming, esports events, and game distribution, areas Saudi Arabia has been investing in heavily over the past three years.
Foreign Subsidy Rules Add a Second Layer of Scrutiny
The EU's standard merger approval does not end the regulatory process. The Commission is also running a separate review under the Foreign Subsidies Regulation. The FSR is a newer EU tool — launched in 2023 — that checks whether foreign government funding gives a buyer an unfair edge in European markets. A final FSR ruling is due July 30, according to GameDev.net.
That second review matters because PIF is a state-owned fund. If regulators find that Saudi subsidies distort competition, they can impose conditions or block deals. So far, the Commission has cleared the antitrust side cleanly, saying the deal is not expected to significantly reduce competition, Insider Gaming reported.
What Comes Next for EA and Its Players
The EU approval removes one of the biggest remaining obstacles to closing the deal. Other regulatory approvals may still be needed in the United States and elsewhere. Once complete, EA will shift from a public company to a privately held one — a massive change for a studio that has traded on Nasdaq for decades, according to Sims Community Info.
For players, the immediate impact is unclear. EA has signaled that operations and leadership will continue as before. But private ownership under a sovereign wealth fund gives PIF far more control over long-term strategy, investment in new titles, and the future of franchises like Battlefield, The Sims, and EA Sports FC, OpenCritic noted.
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