adminThe EA acquisition, a $55 billion deal led by Saudi Arabia’s Public Investment Fund (PIF), is scheduled to close on August 4 after receiving approval from the required regulatory bodies. The transaction is not yet fully complete: Electronic Arts says the merger still depends on the remaining customary closing conditions in its agreement.
Image credit: Electronic Arts
EA acquisition receives regulatory clearance
In a filing with the U.S. Securities and Exchange Commission, EA said that the merger’s completion remains subject to the satisfaction or waiver of the outstanding conditions set out in the agreement. This means regulatory approval is an important step, but closing can still depend on completing the other agreed requirements.
The European Commission cleared the transaction earlier in the week. Its review found that the deal was unlikely to raise competition concerns because its impact on competition in the relevant markets was limited. The Commission reviewed the transaction through its standard merger-review process.
Practical context: A regulatory clearance addresses the reviewing authority’s competition assessment. It does not, by itself, confirm that every closing requirement has been completed.
EA reports higher revenue and net income
In an amended annual report filed on July 28, EA reviewed its performance following its full-year results. The company reported net income of $461 million, an increase of 81.5%, while net revenue rose 12% to $2.1 billion.
EA attributed much of its performance to Battlefield 6. The company said the game met its milestones for a high-quality launch and pointed to positive reviews, stable services, and gameplay.
Despite the reported results, an unspecified number of employees were laid off in March across four studios involved with the game. EA said the changes were intended to better align its Battlefield teams with community priorities. The company also stated that it would continue investing in the franchise, using player feedback and insights from Battlefield Labs to guide its work.
Who is behind the $55 billion deal?
In September, a consortium comprising the PIF, Silver Lake Capital, and Affinity Partners announced plans to acquire EA for $55 billion. EA shareholders approved the acquisition in December. Once the transaction closes, the PIF is reportedly expected to own more than 93.4% of the company.
U.S. lawmakers had previously urged the Federal Trade Commission to examine the deal thoroughly, raising concerns about its possible effects on workers. Those concerns form part of the public discussion around the transaction, while the regulatory approvals announced so far address the authorities’ review of the merger.
What to know about the EA acquisition
The planned August 4 closing date is subject to the outstanding conditions described in EA’s filing. Readers following the EA acquisition should distinguish between approval of the transaction and its final completion: the deal is considered closed only after the remaining requirements have been met or waived.
