The largest leveraged buyout in history faces its final major regulatory hurdle on Wednesday as the European Commission is expected to rule on Saudi Arabia's $55 billion acquisition of Electronic Arts. Industry insiders anticipate unconditional approval, clearing the path for a deal that will reshape the global gaming industry.

A consortium led by Saudi Arabia's Public Investment Fund, private equity giant Silver Lake, and Jared Kushner's Affinity Partners has been pursuing the acquisition since announcing the agreement in late 2025. EA shareholders approved the $210-per-share buyout in December. Only regulatory clearance remains.

The July 22 Deadline

The European Commission set July 22 as its antitrust review deadline when the consortium filed for approval in June. Sources familiar with the matter told Reuters the deal is expected to receive unconditional EU clearance, as the acquisition raises few competitive concerns under traditional merger analysis.

A separate review under EU foreign subsidy rules has a provisional deadline of July 30. That review examines whether state-owned entities are distorting competition through government-backed financing. Given PIF's status as Saudi Arabia's sovereign wealth fund, this scrutiny was expected.

Still, regulators have signaled no intention to block the transaction. PIF has successfully navigated similar reviews for other high-profile acquisitions, including its investments in European football clubs and infrastructure assets.

A Transformative Deal for Gaming

The $55 billion price tag — a 25% premium over EA's unaffected share price — makes this the largest leveraged buyout in gaming history and one of the biggest private equity transactions ever. The deal will take EA private after decades as a publicly traded company.

Electronic Arts commands one of the most valuable portfolios in gaming. Its titles include EA Sports FC (formerly FIFA), Madden NFL, Battlefield, The Sims, and Apex Legends. The company's annual revenue exceeds $7 billion, with sports simulation games driving the majority of profits.

For Saudi Arabia, the acquisition represents another step in Crown Prince Mohammed bin Salman's ambitious Vision 2030 diversification strategy. The kingdom has invested aggressively in gaming and esports, including stakes in Nintendo, Capcom, and Take-Two Interactive. Owning EA outright would make Saudi Arabia a dominant force in the global gaming ecosystem.

Controversy Surrounds the Deal

The acquisition has generated significant controversy. Human rights organizations have criticized the sale, arguing that Saudi Arabia is using sports and entertainment investments to rehabilitate its international image — a strategy critics call "sportswashing."

Jared Kushner's involvement through Affinity Partners has added political dimensions to the deal. Kushner's investment firm received $2 billion from PIF shortly after he left the Trump White House in 2021, a relationship that has drawn scrutiny from ethics watchdogs.

Despite the criticism, the deal has proceeded smoothly through regulatory channels. No major government has attempted to block the acquisition on national security or public interest grounds.

What Happens Next

Assuming Wednesday's EU approval arrives as expected, the consortium will move toward closing the transaction. Final steps include completing financing arrangements and satisfying remaining closing conditions. The deal is expected to close in the second half of 2026.

Once the transaction closes, EA will delist from the Nasdaq and operate as a private company. The new owners have indicated they will invest heavily in EA's franchises and explore opportunities in live-service gaming, mobile, and esports — areas where the company has underperformed relative to competitors.

For EA employees, the transition creates uncertainty. Private equity ownership often brings cost-cutting pressure, though the consortium has emphasized growth investments rather than margin optimization in its public statements.

The Bigger Picture

The EA acquisition caps a remarkable period of consolidation in gaming. Microsoft's $69 billion purchase of Activision Blizzard in 2023 opened the floodgates for mega-deals. Sony, Tencent, and now PIF have all pursued major acquisitions to secure their positions in an industry projected to exceed $300 billion in annual revenue by 2028.

Wednesday's expected approval would represent a landmark moment in sovereign wealth fund investment strategies. If PIF can take private one of gaming's largest companies without meaningful regulatory opposition, the implications for future deals are significant.

The gaming industry has become too important — and too profitable — to escape the attention of the world's largest capital pools. Electronic Arts will soon learn what that attention means in practice.