The European Union has granted approval for Saudi Arabia's Public Investment Fund (PIF), alongside private equity firm Silver Lake and investment company Affinity Partners, to acquire Electronic Arts in a deal valued at $55 billion. This decision by the European Commission follows a standard merger review and concluded that the acquisition would not raise competition concerns.
With the European Commission's endorsement, the deal faces few, if any, remaining national barriers. Electronic Arts' stakeholders had previously approved the acquisition in December of the previous year. If the transaction is finalized, this leveraged buyout, primarily financed through borrowed debt, is poised to become the largest in recorded history.
The acquisition has been a subject of controversy beyond its financial scale. Saudi Arabia's increasing investments in the video game sector, including developers, publishers, and events, have drawn criticism from human rights organizations. These groups point to the country's human rights record and the killing of journalist Jamal Khashoggi, suggesting that these investments are an attempt to improve its international image and attract further investment.
Industry unions have also voiced opposition. In October, the Communications Workers of America urged opposition to the deal and subsequently petitioned the U.S. Federal Trade Commission for assistance in blocking it. Jared Kushner, CEO of Affinity Partners and a former advisor to U.S. President Donald Trump, is also involved in the acquisition. The buyout was initially proposed in September.