EA's Acquisition by Public Investment Fund of Saudi Arabia Officially Approved by EU Commission

The European Commission has approved the proposed $55 billion leveraged buyout of Electronic Arts by Saudi Arabia’s Public Investment Fund (PIF). Two private equity firms, Silver Lake and Jared Kushner’s Affinity Partners, are also involved in the deal.

Before the deal, the Saudi PIF already owned a 10% stake in EA. They also own additional shares of other video game companies, notably Grand Theft Auto publisher Take-Two Interactive.

First announced last September, the deal was approved by EA shareholders, who expect to receive $210 per share once the deal is finalized. Completion is still expected to take place in the first quarter of 2027.

“PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators,” said Turqi Alnowaiser, Deputy Governor and Head of International Investments at PIF, when the acquisition was first announced. “PIF has demonstrated a strong commitment to these sectors, and this partnership will help further drive EA’s long-term growth, while fueling innovation within the industry on a global scale.”

Acquisitions Have Been Quite Common in the Industry Recently

Normally, a deal of this magnitude would result in shockwaves throughout the industry. However, in the year 2026, it’s just another day at the office for video games.

There have been several high-profile studio acquisitions over the past decade-plus, notably Microsoft’s purchase of Bethesda, Activision Blizzard King, and several others. Sony, possibly feeling left out, also acquired several studios, notably Housemarque and Bungie.

However, following those acquisitions, there have also been layoffs and studio closures. XBOX is currently undergoing a massive "reset," resulting in thousands of layoffs. Several studios they acquired, such as Double Fine and Compulsion Games, have now left the company and are independent.

Bungie has also seen layoffs as well, and their future seems to be uncertain following the end of Destiny 2 and the lack of breakout success from Marathon they were hoping for. It's not like having a stellar track record will keep you safe, either. Bluepoint Studios, which did well on the Demon's Souls and Shadow of the Colossus remakes, was shut down by Sony earlier this year.

Video Game Development Seems to be Consolidating, and That's a Bad Thing for Gamers

Even beyond the constant layoffs plaguing the industry, there seems to be a common thread happening here: the capitalist desire for year-to-year growth by any means necessary. Sometimes that comes in the form of consolidation. If there's no competition, then there's no pressure to continually innovate; you control the market.

It's a mindset that can allow companies to do anti-consumer things, such as price their games above the standardized price, or make a decision to stop production on physical games despite a very vocal group of people not liking that.

At the end of the day, though, these companies aren't beholden to us as gamers. They're beholden to their shareholders. In the case of EA, they stand to come out on top of the Saudi PIF acquisition; again, they'll receive $210 a share provided the deal is finalized. Despite concerns of a lack of competition, the EU Commission sees things differently.

They referenced a "limited impact on the European Economic Area and the [EA's] limited combined market position resulting from the proposed transaction" as for a lack of concern should the deal be approved. History, however, has indicated that even if that were indeed true, the fallout would be dire for both developers and gamers.