An investment consortium led by Saudi Arabia’s Public Investment Fund (PIF) is set to secure unconditional European Union approval for its $55 billion acquisition of video game developer Electronic Arts, according to sources familiar with the matter. The deal, which also includes Jared Kushner’s Affinity Partners and private equity firm Silver Lake, is expected to clear its final regulatory hurdles in the EU by the end of July.
Quick Facts
- Deal Value: $55 billion acquisition
- Key Players: PIF, Affinity Partners, Silver Lake
- Approval Expected: By end of July 2026
Navigating European Regulations
The landmark deal is undergoing two separate reviews by the European Commission. The first, under standard EU merger rules, focuses on market competition and is expected to conclude on July 22.
The second, and more recent, is under the EU’s Foreign Subsidies Regulation (FSR). This framework is designed to ensure that companies backed by non-EU government funds do not gain an unfair advantage when acquiring European businesses. Sources indicate that the Commission’s preliminary review, ending July 30, has found no cause for an extended investigation, paving the way for a smooth approval without additional conditions.
This outcome contrasts with other recent deals involving Middle Eastern entities that faced lengthy probes and required remedies to gain approval.
Saudi Arabia’s Global Gaming Gambit
This acquisition is a cornerstone of PIF’s strategy to establish Saudi Arabia as a global hub for the gaming and esports industry, a key pillar of the Kingdom’s Vision 2030 economic diversification plan.
Over the past few years, the sovereign wealth fund has actively invested in global gaming companies and esports tournament organizers to build an integrated ecosystem within the country. Acquiring Electronic Arts adds a portfolio of globally recognized franchises, including EA Sports FC, Battlefield, The Sims, and Madden NFL, significantly strengthening Saudi Arabia’s position in the global entertainment market.
The Biggest LBO in Gaming History
Announced in September 2025, the $55 billion transaction stands as the largest leveraged buyout in the history of the gaming industry. It also ranks among the biggest deals to take a publicly listed company private, highlighting the immense confidence investors have in the long-term growth of interactive entertainment. The move reflects a broader bet on the enduring value of top-tier game franchises as the industry rebounds from a recent downturn.
Business as Usual for Electronic Arts
Following the acquisition’s completion, Electronic Arts will continue to operate from its headquarters in Redwood City, California. Andrew Wilson will remain in his role as Chief Executive Officer.
The plan aims to provide the game developer with greater flexibility to pursue its long-term strategy away from the pressures of public markets, while continuing to invest in developing its popular games and digital services.
About Public Investment Fund (PIF)
The Public Investment Fund is the sovereign wealth fund of Saudi Arabia and one of the largest in the world. Established in 1971, PIF is a key driver of Saudi Arabia’s Vision 2030, a strategic framework to reduce the Kingdom’s dependence on oil, diversify its economy, and develop public service sectors.
Source: Zawya
