EA’s “prostitution case” has taken another step forward. The European Commission officially announced that the $55 billion EA acquisition led by Saudi Arabia’s Public Investment Fund (PIF) would not raise concerns about market competition and therefore approved the transaction to pass antitrust review. This also means that one of the largest acquisitions in gaming history has passed an important hurdle.
EU gives green light, but deal isn’t quite done yet
According to an announcement from the European Commission, officials believed that the transaction would have limited impact on competition in the relevant market, so it was approved in accordance with the general merger review procedures. However, this does not mean that the acquisition has been officially completed. The EU is currently still conducting another review under the Foreign Subsidies Regulation (FSR), and a final decision is expected to be made in the near future. If it passes smoothly, the deal will be the last step away from formal completion.
Saudi Arabia will become EA’s largest shareholder!
The deal was first announced last year, with an investment consortium formed by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake and Affinity Partners founded by Jared Kushner to jointly acquire EA. After the transaction is completed, PIF is expected to hold approximately 93.7% of the shares, Silver Lake approximately 5.5%, and Affinity Partners approximately 1.1%. EA will also officially transform from a public company to a private company.
Players’ worries remain
Although the EU believes that this acquisition will not affect market competition, outside discussions on the transaction have never stopped. Many creators of “The Sims” have previously quit the EA Creator Network, worried that the company’s future direction, creative freedom and inclusive policies may be affected by new shareholders. However, EA still states that the company’s core values and the development direction of its games will not change as a result.