The last major checkpoint on a $55 billion bid for one of gaming’s biggest publishers has now been cleared.
Saudi Arabia’s Public Investment Fund won approval from the European Commission to acquire Electronic Arts, with regulators determining under the EU Merger Regulation that the takeover poses no competition concerns. Securing that clearance removed one of the final significant hurdles standing in the PIF’s way.
In its own words, the Commission described the scope this way: “The transaction relates primarily to the production and distribution of video games for mobile devices, PCs and consoles, as well as the organisation and commercialisation of video game competitions, commonly referred to as electronic sports events.”
Its conclusion followed: “The Commission concluded that the notified transaction would not raise competition concerns, given its limited impact on competition in the markets where the companies are active. The notified transaction was examined under the normal merger review procedure.”
Why this number matters
Should the acquisition be finalized, it would stand as the biggest private leveraged buyout ever recorded — meaning a deal funded largely through borrowed debt.
It would also become the second-largest transaction in the history of the video game business. Only Microsoft’s purchase of Activision Blizzard tops it, and that chapter has been far from a happy one. Microsoft recently cut over 3,000 jobs.
The PIF isn’t making the move by itself. Its co-investors include the private equity firm Silver Lake and Affinity Partners, the investment outfit led by Jared Kushner.
Saudi Arabia has been collecting game companies
This marks the kingdom’s newest push into gaming, and its activity has been relentless. The PIF controls Savvy Games Group and holds positions in Activision Blizzard, Capcom, Embracer Group, Nintendo and Take-Two.
On top of that, it holds a 97% stake in publisher SNK, the studio behind last year’s Fatal Fury: City of the Wolves.
Officially, Saudi Arabia frames its entry into gaming as an effort to diversify an oil-dependent economy. Many observers see it another way. For them, it resembles a gaming edition of what critics have labeled “sportswashing.”
The nation carries a damaged international reputation stemming from widespread human rights abuses and alleged crimes on the world stage, among them the killing of Washington Post columnist Jamal Khashoggi. It has bankrolled sports competitions such as the Saudi Pro League and LIV Golf to polish its public image.
Games are now getting the same treatment. According to critics, the aim is to make gamers link Saudi Arabia to entertainment instead of to harsh working conditions for migrant workers and anti-LGBTQ legislation.
Some players aren’t buying it
Just last week, the speedrunning charity Games Done Quick backed away from a sponsored event connected to SNK, the publisher of Metal Slug, that was staged to mark the series’ 30th anniversary. GDQ cut the broadcast midway after facing criticism on social media for teaming up with a company owned by the PIF.
EA’s executives insist the studio will “maintain creative control” under its incoming owners. Skepticism is warranted.
Consider Fatal Fury: City of the Wolves. The Saudi government seems to have influenced its production, and the giveaway sits in the character lineup. The game brought in guest fighters such as footballer Cristiano Ronaldo and DJ Salvatore Ganacci — additions that only add up when you trace the money.
Ronaldo competes in a league financed by the PIF. Ganacci has performed within the country.
The transaction won’t wrap up immediately. Still, the obstacles are disappearing quickly. If it clears, the real question isn’t whether Saudi funding will touch EA’s titles — it’s how long EA can hold onto its independence afterward.