Electronic Arts said Thursday that its $55 billion sale to a consortium led by Saudi Arabia’s Public Investment Fund has received all required regulatory approvals, clearing the way for one of the largest leveraged buyouts in history to close next week.

The video-game publisher expects the transaction to be completed around the close of trading on August 4, according to a filing with the Securities and Exchange Commission. EA will then leave the public market and become privately owned by the Saudi fund, Silver Lake and Affinity Partners.

Shareholders are set to receive $210 in cash for each EA share. The purchase price represented a roughly 25% premium to the company’s unaffected stock price when the agreement was announced in September 2025.

European Union approval under the bloc’s Foreign Subsidies Regulation removed the final major obstacle. That review examines whether financial support from governments outside the EU gives buyers an unfair advantage when acquiring companies that operate inside the bloc.

Ordinary competition clearance had already been granted. The additional subsidy review carried greater significance because Saudi Arabia’s Public Investment Fund is controlled by the kingdom and has become one of the world’s largest state-backed investors.

EA’s filing said every regulatory approval required to complete the merger had been obtained by July 30. Only customary closing conditions remain.

The deal will place franchises including EA Sports FC, Madden NFL, Battlefield, The Sims and Apex Legends under private ownership. Those titles give the buyers access to recurring revenue from annual releases, digital subscriptions and in-game purchases tied to some of the world’s largest sports and entertainment brands.

Financing creates the transaction’s central business risk. Approximately $20 billion of the purchase is expected to be funded with debt, leaving the newly private company responsible for substantial interest payments and increasing pressure to generate predictable cash.

Large leveraged buyouts typically depend on cost reductions, stronger margins and eventual growth in the value of the acquired company. For EA, that may mean greater concentration on its most profitable franchises, tighter control over development budgets and fewer resources for smaller or experimental games.

Going private could give management more time to develop products without quarterly earnings pressure. It could also make internal restructuring less visible because EA will no longer publish the same detailed financial results required of a publicly traded company.

Employees and game developers therefore face uncertainty over whether the new owners will prioritize investment or savings. Debt-heavy acquisitions can produce layoffs, studio consolidation and canceled projects when expected revenue does not materialize quickly enough.

Consumers may see the impact through pricing and product strategy. EA’s sports games increasingly rely on subscriptions, digital content and recurring player spending rather than the sale of a single game. Private-equity ownership could accelerate that shift because repeat purchases provide the dependable cash flow needed to service acquisition debt.

Saudi Arabia gains a different advantage. The acquisition expands the kingdom’s influence across gaming, sports and entertainment as it works to diversify its economy beyond oil.

The Public Investment Fund already owns stakes in major video-game companies and controls Savvy Games Group, which acquired mobile-game publisher Scopely. Adding EA gives the kingdom influence over some of the world’s most recognizable sports-game properties and a direct commercial relationship with leagues, athletes and millions of players.

Silver Lake brings experience investing in technology and entertainment, while Affinity Partners adds another financial sponsor to the consortium. EA Chief Executive Andrew Wilson is expected to remain in his position, and the company plans to keep its headquarters in Redwood City, California.

Regulatory approval does not remove the financial challenge. Higher global interest rates make the $20 billion debt burden more expensive than it would have been during the earlier era of cheap financing, increasing the importance of stable game sales and digital revenue.

Once the transaction closes, attention will shift from whether the buyers can acquire EA to how they intend to earn a return on the largest gaming buyout ever completed. The answer will determine whether private ownership gives the company freedom to invest for the long term or forces it to extract more money from its biggest franchises.

JBizNews Desk | Redwood City, California

© JBizNews.com All Rights Reserved. Reproduction or distribution without written permission is prohibited.