Saudi Arabia’s $55B takeover of EA clears final hurdles, set to close Aug. 4

Electronic Arts ↗ 0.33% confirmed on Wednesday that all regulatory approvals required to complete its $55 billion takeover by Saudi Arabia's Public Investment Fund have been obtained, with the deal expected to close on or about August 4, 2026.

A Form 8-K filing with the US Securities and Exchange Commission stated that "as of July 30, 2026, all regulatory approvals required to complete the Merger have been obtained," adding that "completion of the Merger remains subject to the satisfaction or waiver of the remaining customary closing conditions set forth in the Merger Agreement."pcgamer

The announcement follows the European Commission's approval of the deal on July 23 under EU merger rules, with the bloc concluding the transaction "would not raise competition concerns." The Commission also cleared the deal under its Foreign Subsidies Regulation, which had been viewed as the more substantial hurdle.live.euronext+2

The Largest Leveraged Buyout in History

The acquisition, first announced on September 29, 2025, will see a consortium led by the PIF, alongside private equity firm Silver Lake and Jared Kushner's Affinity Partners, take EA private. Shareholders will receive $210 per share in cash, representing a 25% premium over EA's share price at the time of the announcement.cnbc

The deal is financed with $36 billion in equity and $20 billion in debt from J.P. Morgan JPMorgan Chase & Co. ↗ 1.78%, making it the largest leveraged buyout in business history. Industry analysts have warned that the debt burden could force EA to restructure aggressively. Bloomberg's Jason Schreier reportedly said the company could consider "mass layoffs, more aggressive monetisation, and other big cost-cutting measures" to manage repayments.videogamesindustrymemo+1

The Video Games Industry Memo newsletter argued that EA is likely to streamline around sports titles like EA Sports FC and Madden NFL, service-based shooters like Battlefield, and The Sims — while dormant intellectual properties such as Mirror's Edge, Dead Space, and Titanfall could be sold off.videogamesindustrymemo

Soft Power and Scrutiny

The acquisition has drawn attention to Saudi Arabia's broader strategic ambitions. The kingdom's national video game strategy aims to generate billions in economic value and support tens of thousands of jobs. With EA's portfolio of esports-friendly sports and shooter titles, the PIF gains reach into sporting communities worldwide — a form of soft power projection that some analysts view as complementing, or even replacing, Saudi Arabia's more traditional sports investments.videogamesindustrymemo

The deal has also reignited debate over executive compensation in the gaming industry. An SEC filing revealed that EA CEO Andrew Wilson received $38.6 million in total compensation for fiscal year 2026, roughly $8 million more than the prior year, with the increase driven largely by performance-based incentives tied to the successful launch of Battlefield 6. The disclosure drew criticism given EA's recent layoffs affecting employees connected to the Battlefield franchise.techstory

Former BioWare lead writer Trick Weekes predicted that under Saudi ownership, "guns and football" games will be fine, but that content involving "gay stuff" or unwelcome political themes would fall by the wayside. Several prominent Sims 4 content creators quit EA's creator network over the buyout in 2025, citing the Saudi kingdom's repression of women and the LGBTQ+ community.pcgamer