South Africa’s competition authority has approved the $55 billion acquisition of video game publisher Electronic Arts by a consortium led by Saudi Arabia’s sovereign wealth fund.
The South African Competition Commission has given its unconditional approval to the $55-billion (R860.8-billion) acquisition of Electronic Arts led by Saudi Arabia’s sovereign wealth fund.
Electronic Arts is headquartered in Redwood City, California, and publishes games such as EA SPORTS FC, Madden NFL, Apex Legends, Battlefield, and The Sims.
Saudi Arabia’s Public Investment Fund (PIF) offered a $210-per-share buyout, which Electronic Arts (EA) shareholders approved in a vote on 22 December 2025.
The buyout marks a turning point for the 40-year-old EA. Saudi Arabia’s PIF is making splashy investments in the interactive media sector to diversify away from oil.
Analysts believe that taking EA private will allow developers to focus on making good games without pressure from public investors to meet quarterly targets.
The Commission has approved the proposed transaction where Oak-Eagle AcquireCo intends to acquire EA, without conditions.
Oak‑Eagle AcquireCo is also incorporated in the State of Delaware and is a special-purpose vehicle established for the proposed transaction and does not control any firms in South Africa.
The Commission noted that the acquiring group has investments across various sectors, including the digital sector. EA is not controlled by any shareholder and does not control any firms in South Africa.
“Of relevance to the proposed transaction are its activities relating to the supply of video games for mobile device applications,” the Commission stated. “The Commission is of the view that the proposed transaction is unlikely to substantially lessen or prevent competition in any relevant market. The proposed transaction does not raise significant public interest concerns.”
Bloomberg reported last week that Saudi Arabia’s Public Investment Fund is transferring roughly $12 billion (R187.8 billion) worth of gaming company shares to its subsidiary Savvy Games Group.
This includes shares in firms such as Nintendo and Bandai Namco. Once the transfers are complete, Savvy will own about 10% of firms such as Koei Tecmo, NCSoft, Nexon, and Square Enix.
Source: Mybroadband.com
