EA Sale to Saudi Arabia Approved by European Commission

The proposed sale of Electronic Arts to an investor consortium led by Saudi Arabia's Public Investment Fund (PIF) has cleared a major hurdle in the closing process.

The European Commission has officially approved the merger, stating that it does not raise competition concerns. The $55 billion deal, structured as a leveraged buyout (LBO), involves significant debt for EA, leading to speculations about potential cost-cutting measures like layoffs, studio closures, and game cancellations. While BioWare employees fear possible cuts under the new ownership, concerns have been raised about EA's future approach to diversity and inclusive storytelling. The sale, which also involves Silver Lake and Jared Kushner's Affinity Partners, poses risks for EA, but the company is moving forward despite challenges.