The European Union has approved the controversial $55bn acquisition of Electronic Arts by Saudi Arabia’s Public Investment Fund (PIF), private equity company Silver Lake, and investment company Affinity Partners.
The European Commission announced its decision in a bulletin, saying the proposed acquisition was approved after its normal merger review procedure determined no competition concerns would be raised as a result of the buyout.
EA’s acquisition was approved by stakeholders in December last year and, with the European Commission now giving the thumbs up, it’s likely no major national barriers to its completion remain. If it goes through, the $55bn leveraged buyout (meaning an acquisition done mostly with borrowed debt) will be the largest in history.
That’s not the only reason the acquisition has proved controversial. Saudi Arabia’s ongoing financial hoovering of video game developers, publishers, and gaming events has been criticised by human rights organisations as sportswashing. The country’s recorded human rights abuses and the killing of journalist Jamal Khashoggi have provoked international outcry, and its investment in overseas industries is widely seen as an effort to better its standing and entice investment.
EA’s acquisition – which also involves US president Donald Trump’s son-in-law Jared Kushner, CEO of Affinity Partners – has been criticised by video game industry unions too. Last October, the Communications Workers of America pushed back against the deal and later wrote to the US Federal Trade Commission to ask for assistance opposing the deal.
