The EU Approves $55 Billion Saudi-Led Buyout of EA
The European Commission has cleared the $55 billion takeover of Electronic Arts (EA) by a Saudi-led consortium under its foreign subsidies regulation, removing a significant regulatory hurdle to what is considered the largest leveraged buyout in history.
Background
In September 2025, Saudi Arabia’s Public Investment Fund (PIF), along with private equity firm Silver Lake and Affinity Partners led by Jared Kushner, agreed to take EA private. The deal raised concerns about state money influencing competition within Europe, prompting a thorough review under the EU’s Foreign Subsidies Regulation.
Commission Decision
The European Commission concluded that the transaction would not raise competition concerns and subsequently approved it under both merger and subsidy rules, allowing the acquisition to proceed across the bloc.
Implications for EA
This marks a significant change in ownership for EA, with the company behind popular franchises like The Sims, Battlefield, Apex Legends, and its long-running football series transitioning from public markets into the hands of PIF and its partners. The deal also reflects a strategic bet on EA’s monetization strategies, particularly its recent efforts to build an advertising platform within its games aimed at over 100 million players.
Saudi Arabia’s Vision
PIF’s acquisition is part of Saudi Arabia’s broader push to establish itself as a global gaming hub and diversify its economy beyond oil. Through Savvy Games, PIF has been investing in studios and esports firms worldwide, making the EA buyout its most substantial prize.
Scrutiny and Challenges
The deal has faced scrutiny from human rights groups and lawmakers concerned about the political implications, including Jared Kushner’s involvement and the source of funding. The transaction still requires review by authorities elsewhere, notably in the United States, where the Committee on Foreign Investment (CFIUS) scrutinizes foreign control of American companies. The US review is particularly significant due to the involvement of a Gulf state and a president’s son-in-law.
Industry Trends
The gaming industry has witnessed similar consolidations in recent years, including speculation about Microsoft’s future targets and its acquisition of Activision Blizzard. Transatlantic tensions over technology regulation have also escalated, with US lawmakers advocating for a trade probe into EU tech rules.