Saudi Arabia's Public Investment Fund (PIF) has received approval from the European Commission for its proposed $55 billion acquisition of Electronic Arts (EA). The commission stated it will not oppose the deal, concluding that the buyout will not raise competition concerns within the European Union.
The ruling, made under the EU Merger Regulation, found that the transaction would have a limited impact on the markets where EA is active. The European Commission's review followed a standard merger procedure, contrasting with the in-depth investigation and commitments required for Microsoft's acquisition of Activision Blizzard.
The PIF's proposed acquisition of EA differs from previous large gaming industry deals as it represents a transfer of ownership intended to take the company private. This structure carries its own financial considerations, including approximately $20 billion in debt that EA will assume to finance the deal. However, these financial aspects were not a factor in the European Commission's competition-focused ruling.
Despite the European Commission's approval, the deal still faces scrutiny from other bodies. Game developers and U.S. lawmakers have previously voiced significant concerns and urged the U.S. Federal Trade Commission (FTC) to conduct a thorough review of the proposed takeover. Reports suggest potential political ties that could influence the FTC's stance, with the PIF set to own over 93% of EA if the acquisition is finalized.