President of the Communications Workers Association of America (CWA) written to the Federal Trade Commission (FTC) And The Committee on Foreign Investment in the United States (CFIUS) is calling for a comprehensive review of the recently announced buyout of Electronic Arts (EA).
Electronic Arts has confirmed that it is entering into an agreement to be acquired by a group of investors. late last month included Saudi Arabia's Public Investment Fund (PIF), Silver Lake and Affinity Partners.
The investment group will acquire 100% stake in the developer, with PIF increasing its existing stake in the company and becoming the “largest sponsored private investment in history” when it closes before the first quarter of FY27.
PIF is managed by Prince Mohammed bin Salman Al Saud of Saudi Arabia, and the investment company Affinity Partners was founded by Donald Trump's son-in-law Jared Kushner.
Calling the acquisition “unprecedented” with “consequences for workers and consumers,” Claude Cummings Jr. called on federal regulators to take “all necessary steps to prevent foreign and private equity interests from destabilizing the American video game industry.”
Cummings Jr. suggests the deal's risks include competitive labor market concerns given the growing consolidation of the gaming industry, national security risks “giving foreign owners access to vast collections of personal data and communications of American video game consumers,” as well as foreign ownership of EA's technologies, including artificial intelligence, and competitive risks associated with cross-ownership of EA's competitors, suppliers and licensors.
“This deal is not about innovation or growth in the US economy. This is about handing over control to a small group of powerful investors and putting thousands of jobs and sensitive consumer data at risk,” Cummings Jr. said of the deal.
“I urge CFIUS Chairman Scott Bessent and FTC Chairman Andrew N. Ferguson to carefully review this deal and ensure it protects American workers, consumers and the future of the video game industry.”
Earlier today, Electronic Arts published financial results for the second quarterrecording declining sales and revenue despite the growth of the sports franchise.
