The European Commission has approved the proposed $55 billion takeover of the video game company Electronic Arts (EA) by Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF). The decision clears one of several regulatory hurdles the deal still faces Engadget.

A sovereign wealth fund is a government-owned investment fund that manages a country's financial assets. PIF is Saudi Arabia's, and it has been investing heavily in sports and entertainment in recent years.

Reuters broke the news on July 23, 2026. The Commission concluded that the deal "would not raise competition concerns, given its limited impact on competition in the markets where the companies are active." The review covered the production and distribution of PC, console, and mobile games, as well as esports events Engadget.

The July 23 decision landed one day past the deadline the EU had set for its antitrust ruling, which was July 22, 2026 Reuters.

Antitrust clearance is not the end of the EU's involvement. The European Commission is separately reviewing the deal for compliance with EU foreign subsidy rules, with a July 30 deadline for that decision Engadget. Foreign subsidy rules are designed to check whether a government-backed buyer is using state money in ways that could unfairly distort competition within the EU's market. Reuters reported on July 17, citing unnamed sources, that PIF was set to win EU approval under those rules as well Reuters.

If the deal closes, PIF would own over 93 percent of EA. Private equity firms Silver Lake and Affinity Partners would hold the remaining stakes Engadget. EA shareholders overwhelmingly approved the takeover in December Engadget.

The financial structure of the acquisition carries its own weight. If completed, it would be the largest leveraged buyout in history. A leveraged buyout is a deal where the buyer borrows money to purchase a company and then places that debt on the purchased company's books. EA would carry over $20 billion in debt used to finance the transaction Engadget.

The deal still requires approval from the Committee on Foreign Investment in the United States (CFIUS), a US government body that reviews foreign purchases of American companies for national security risk Engadget. Members of the US Congress have called on the Federal Trade Commission to thoroughly review the merger Engadget.

The broader context here is that the EU is running two separate reviews on this one deal. The first is traditional merger control, which asks whether the transaction reduces competition in relevant markets. The second is the newer Foreign Subsidies Regulation, which checks whether government-backed financial advantages distort the EU's internal market. Running both on a single deal is not unusual for a transaction of this size and ownership profile, but it means antitrust clearance was never going to be the only gate. The July 30 foreign subsidy deadline is the next concrete date to watch.

On the US side, CFIUS review introduces a different set of considerations. Where EU merger control asks about competition, CFIUS assesses national security risk, a broader and more politically flexible standard. Congressional pressure on the FTC adds another variable, though the FTC's jurisdiction and CFIUS's are distinct. The involvement of Affinity Partners, a firm with ties to Jared Kushner, has drawn additional political attention to the transaction, as reported by the New York Times in September 2025 NYT.

The debt load warrants attention. Over $20 billion in financing placed on EA's balance sheet is a normal feature of leveraged buyouts, not an accident, but the scale here is unprecedented in the gaming sector. How that debt interacts with EA's existing revenue from franchises like FIFA/EA Sports FC, Madden, and Apex Legends will depend on terms that have not been publicly detailed. In leveraged buyouts, the acquired company, not the buyer, typically shoulders the debt, and EA would be no exception.

For the gaming industry, PIF taking over a publisher the size of EA continues a pattern of government-backed money flowing into interactive entertainment, a trend that has grown across esports, event organizing, and game development over the past several years. The EU's finding that the deal has "limited impact" in the markets where both parties are active suggests the Commission did not see meaningful overlap between PIF's existing gaming holdings and EA's publishing business in PC, console, or mobile markets.

The path from here is narrowing but not closed. EU foreign subsidy clearance by July 30, CFIUS approval in the US, and any FTC response to congressional pressure are the remaining checkpoints. EA shareholders have already spoken; the regulatory process now holds the timeline.