Saudi Arabia's Public Investment Fund (PIF) is poised to clear a major regulatory hurdle in its $55 billion acquisition of Electronic Arts. The European Union plans to approve the takeover by late July under EU subsidy rules, according to sources cited by Reuters on July 17.
The deal, announced in September 2025, represents one of gaming's largest acquisitions. It pairs PIF with Jared Kushner's investment firm and other backers to take EA private. The company has faced intense scrutiny from regulators worldwide over concerns about foreign state ownership of a major Western gaming publisher.
EU approval matters because the bloc controls market access for one of EA's largest revenue streams. Europe accounts for roughly 20-30 percent of the company's annual revenue through franchises like FIFA/FC, The Sims, and Battlefield. Without EU clearance, EA's operations on the continent faced uncertainty.
The subsidy rules approval pathway suggests EU regulators determined PIF's financing structure complies with competition and foreign investment protections. This contrasts with other jurisdictions that have raised red flags. The UK's National Security and Investment Act previously required conditions on the deal, though specifics remain limited. The United States has also monitored the transaction.
PIF now controls major stakes across gaming, esports, and entertainment. The fund already owns portions of Embracer Group, SNK, and the LIV Golf league. Taking EA private signals PIF's long-term commitment to gaming assets rather than speculative investment.
For EA, privatization means freedom from quarterly earnings pressure and activist investors. This allows longer development cycles and higher risk-taking on new IPs. However, it also raises questions about live service games and monetization strategies under state ownership.
The deal's final close still requires approvals from other jurisdictions and customary closing conditions. But EU clearance removes one of the transaction