The European Union (EU) is set to approve Saudi Arabia’s $55 billion acquisition of Electronic Arts (EA), Reuters reported on Friday, citing people familiar with the matter.
Why it matters: The deal, led by the Public Investment Fund (PIF) alongside Affinity Partners and Silver Lake, is the largest leveraged buyout in corporate history, signaling Saudi Arabia’s growing ambition to become a global hub for gaming and Esports, as the Kingdom works to diversify beyond oil.
Driving the news: The European Commission plans to clear the deal once its preliminary review ends on July 30. The review falls under the EU’s Foreign Subsidies Regulation (FSR), Reuters’ sources said. That regulation guards against unfair non-EU subsidies for firms acquiring rivals inside the bloc.
Sources also expect the deal to win unconditional clearance under a separate merger-rules review that wraps up on 22 July. Neither the Commission nor EA commented.
For context, EU regulators have scrutinized major gaming deals closely before. Microsoft, for example, signed several licensing agreements to win approval for its $69 billion purchase of Activision Blizzard.
The consortium: Saudi Arabia’s Public Investment Fund (PIF), Jared Kushner’s Affinity Partners and private equity firm Silver Lake announced the deal in September 2025. The group plans to buy EA for $210 a share, a 25% premium, and take it private. EA publishes global franchises like EA Sports FC, The Sims and Apex Legends.
Between the lines: Two earlier deals involving Middle Eastern firms took longer to clear, with regulators approving Abu Dhabi’s ADNOC in its bid for Germany’s Covestro only after a lengthy probe. They did the same for the UAE’s e& in its purchase of Czech telecom PPF assets.
A New Era for Global Gaming
The EA buyout is a cornerstone of Saudi Arabia’s Vision 2030 economic diversification strategy. PIF, with over $900 billion in assets, has identified gaming as a key sector for growth. Its Savvy Games Group, established in 2021 and headquartered in Riyadh, has already made significant investments, including the $3.5 billion purchase of Niantic and a planned $6 billion acquisition of Moonton from ByteDance. Savvy also owns Scopely and ESL Gaming, and recently received a $3 billion stake in Take Two Interactive.
“PIF is uniquely positioned in global gaming and esports, connecting fans, developers and IP creators,” said Turqi Alnowaiser, PIF’s deputy governor and head of international investments. “This partnership will further drive EA’s long-term growth while fuelling innovation across the industry.”
Gaming gives Saudi Arabia a strong foothold in software, intellectual property and live-service platforms. It also complements the Kingdom’s parallel bets on tourism, sports and infrastructure. Saudi Arabia already counts more than 23 million gamers among its 35 million residents, one of the highest per-capita rates worldwide.
These investments aim to create 39,000 jobs, establish 250 gaming companies, and contribute SAR50 billion to the national GDP. PIF Governor Yasir Al-Rumayyan recently highlighted the fund’s focus on gaming, Esports, and AI as key sectors for economic transformation. The fund’s 2026–2030 strategy, approved by Crown Prince Mohammed bin Salman, prioritizes these areas to build competitive domestic ecosystems.
Saudi Arabia’s Gaming Ambitions
The big picture: The acquisition underscores Saudi Arabia’s ambition to become a global hub for gaming and entertainment. Unlike Microsoft’s $69 billion Activision Blizzard purchase, which required extensive concessions, the EA deal is expected to win unconditional EU clearance. This reflects growing regulatory confidence in Saudi investment and alignment with international standards.
PIF’s expansion has contributed over $243 billion to non-oil GDP between 2021 and 2024. The fund’s assets grew from $150 billion in 2015 to over $900 billion. Its disciplined approach and strong credit ratings from Moody’s, Fitch, and S&P enable aggressive capital raising through global debt markets.
The deal positions Saudi Arabia as a major player in the global gaming industry. With PIF’s backing, EA will have access to substantial resources to develop new franchises and invest in cutting-edge technologies.
What’s next: EA will keep operating under CEO Andrew Wilson from its California headquarters once the deal closes. The consortium expects that milestone in the first quarter of fiscal year 2027. Analysts at Wedbush Securities say the new ownership could unlock real growth in EA’s mobile and Ultimate Team businesses. That could add more than $1 billion in annual free cash flow.
