EA Shareholders Have Officially Approved the $55 Billion Sale to Saudi Arabia PIF and Silver Lake

EA shareholders have voted to approve the sale of the company to a consortium led by Saudi Arabia's Public Investment Fund (PIF) and Silver Lake. This marks the first major hurdle in EA's journey toward becoming a private entity, following initial reports from Stephen Totilo at GameFile.

The privatization process of EA is still in its early stages, much like Microsoft's acquisition of Activision Blizzard King. If this transaction proceeds, it could take several months to complete, given the complexity and regulatory scrutiny involved.

The deal has already sparked concerns from global regulators and US senators, as noted in letters to the Treasury Secretary. These concerns focus on potential foreign influence, particularly from Saudi Arabia's authoritarian regime, which could leverage EA's global presence.

Similarly, Canadian regulators are also scrutinizing the deal. Canada's competition bureau has expressed concerns about job losses and labor market impacts, especially considering EA's operations in Vancouver through Motive EA and BioWare.

EA has assured the public that the deal won't lead to immediate layoffs, though some analysts suggest job cuts are inevitable given the company's massive debt and need to cut costs.

EA's history of recent layoffs, including over 1,700 workers since 2023, adds to concerns about the potential impact on the video game industry workforce.

If the deal goes through, Saudi Arabia's PIF will own 93.4% of EA, with other consortium investors competing for the remaining 6.6%. The process is expected to be lengthy and could face significant challenges before final approval.