The European Commission has granted antitrust approval to the proposed $55 billion takeover of Electronic Arts (EA) by Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), clearing one of several regulatory hurdles the deal still faces Engadget.

Reuters broke the news on July 23, 2026. The Commission concluded that the transaction "would not raise competition concerns, given its limited impact on competition in the markets where the companies are active." The deal was reviewed under the Commission's standard merger review process and covers 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. Reuters reported on July 17, citing unnamed sources, that PIF was set to win EU approval under those foreign subsidy 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, or LBO, is a deal where the acquirer uses borrowed money to finance the purchase, then places that debt on the acquired 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 government body that reviews foreign acquisitions of US 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 a convergence of two regulatory frameworks the EU has built over the past several years. Traditional merger control asks whether a deal reduces competition in relevant markets. The newer Foreign Subsidies Regulation gives the Commission tools to scrutinize whether state-backed financial advantages distort the EU's internal market. That the Commission is running both tracks in parallel on a single transaction is not unusual for a deal of this magnitude and ownership profile, but it does mean that antitrust clearance, while a necessary milestone, was never going to be the sole 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 focuses on competition, CFIUS assesses national security risk, a broader and more politically malleable 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 structural feature of leveraged buyouts, not an accident, but the scale here is unprecedented in the gaming sector. How that debt service interacts with EA's existing revenue streams 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 entity, not the acquirer, typically shoulders the debt, and EA would be no exception.

For the gaming industry, PIF consolidation of a publisher the size of EA continues a pattern of sovereign capital flowing into interactive entertainment, a trend that has accelerated across esports, event organizing, and game development over the past several years. The EU's competition finding that the deal has "limited impact" in the markets where both parties are active suggests the Commission did not view vertical or horizontal overlap as a meaningful concern, likely because PIF's existing gaming-related holdings, while growing, do not yet constitute a competitive constraint on 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.