Visitors play the EA Sports FC 25 game at the Gamescom video game fair in Cologne, on Aug. 21, 2024. (Credit: Ina Fassbender/AFP)
The European Union on Thursday gave its approval to the takeover of American video game publisher Electronic Arts (EA) by Saudi Arabia’s sovereign wealth fund.
This deal, valuing EA at $55 billion, was approved without conditions by the European Commission, which found no grounds for concern regarding competition in the video game market. “The Commission concluded that the notified transaction would not raise any competition concerns," Brussels confirmed in a statement.
The Commission is also reviewing the deal under its regulation on foreign subsidies, with a decision expected by July 30.
The Saudi Public Investment Fund (PIF) announced the acquisition of the highly popular video game publisher in September, in partnership with American funds Silver Lake and Affinity Partners, the latter founded by Donald Trump’s son-in-law Jared Kushner. In recent years, Saudi Arabia has multiplied investments in tourism and entertainment, aiming to diversify its economy, which is heavily dependent on oil and gas extraction.
The acquisition of EA is part of this strategy. Electronic Arts’ biggest success is its “FIFA” football simulation title, which was renamed “EA Sports FC” after a financial dispute with the international football federation.
The Redwood City, California-based group also publishes, under license, the sports simulations “Madden” (American football), NHL (hockey), UFC (mixed martial arts), and F1. The developer also owns The Sims franchise, the well-known simulation game featuring virtual avatars.
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