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Saudi PIF Seeks EU Nod for EA Acquisition
17 Jun
Summary
- Investor group seeks EU antitrust approval for EA purchase.
- The deal is valued at $55 billion and announced last September.
- EU regulators have set a July 22 deadline for their decision.
A consortium of investors, notably Saudi Arabia's Public Investment Fund (PIF) and Jared Kushner's Affinity Partners, has submitted an application to EU antitrust authorities for approval of their $55 billion acquisition of videogame developer Electronic Arts (EA).
The European Commission, acting as the bloc's competition watchdog, has established a decision deadline of July 22 for this significant transaction. Regulators will either grant clearance, potentially with conditions, or initiate a deeper investigation if serious competition concerns arise.
The deal, initially revealed in September of the previous year, involves EA, the creator of popular titles such as "Battlefield" and "Madden NFL." The PIF, a substantial sovereign wealth fund, is making a strategic move into the gaming sector, aligning with Saudi Arabia's ambitions to become a global hub for gaming and sports.
In addition to antitrust review, the acquisition is expected to undergo scrutiny under EU regulations designed to prevent unfair foreign subsidies. The investor group has not yet sought clearance under these specific subsidy rules.
