US EditionSenators raise national security and foreign influence concerns over Saudi-led EA takeover
Senators and unions warn the Saudi Public Investment Fund could influence EA’s operations and threaten American jobs, with banking fees expected to reach $500 million.
- On Thursday, U.S. Senators Richard Blumenthal and Elizabeth Warren urged the Treasury Department to 'hit the brakes' on Saudi Arabia's Public Investment Fund $55,000,000,000 leveraged buyout of Electronic Arts, which includes roughly $20,000,000,000 debt organized by JP Morgan and is set to complete in mid-2027.
- Concerns center on the potential for Public Investment Fund control to influence Electronic Arts' design and features to advance Saudi objectives, while dictating U.S. cultural narratives.
- Banking partners including JP Morgan stand to earn $500 million in banking fees, while EA's C-suite could receive premium payouts on stock awards, analysts warn.
- United Videogame Workers-CWA and the Communications Workers of America called for regulators to investigate mass layoffs and petition fans and developers to contact the Federal Trade Commission, also seeking Treasury Department details on Jared Kushner communications.
- The deal could prompt teams at Respawn Entertainment and other EA-owned studios to seek union membership, while critics call on regulators to protect jobs and creative freedom amid potential closures.
17 Articles
17 Articles
What the US$55 billion Electronic Arts takeover means for video game workers and the industry
Electronic Arts (EA) is one of the world’s largest gaming companies. It has agreed to be acquired for US$55 billion in the second largest buyout in the industry’s history. Under the terms, Saudi Arabia’s sovereign wealth fund (a state-owned investment fund), along with private equity firms Silver Lake and Affinity Partners, will pay EA shareholders US$210 per share. EA is known for making popular gaming titles such as such as Madden NFL, The Sim…
Senators raise national security and foreign influence concerns over Saudi-led EA takeover
Saudi Arabia's Public Investment Fund (PIF) – which already owned 9.9% of EA – Silver Lake Partners, and Jared Kushner's Affinity Partners investment firm agreed to the $55 billion acquisition of EA last month.Read Entire Article
EA Acquisition By Saudi PIF Faces Backlash From Game Developers Union
The US$55 billion (~RM231 billion) acquisition of Electronic Arts (EA) by the Saudi-backed Public Investment Fund (PIF) has, unsurprisingly, stoked many fires underneath the gaming community, even to the point that one of its own studios expressed concerns about its future. Recently, there’s been further pushback, this time from the US-based United Videogame Workers-CWA union. The union put out a statement, calling for regulators and lawmakers t…
The Communications Workers of America (CWA) trade union calls for a detailed examination of the acquisition of Electronic Arts.
Electronic Arts: A Game Developers' Union Demands an Investigation!
The Videogame Workers United union believes that the US Federal Trade Commission (FTC) should take a closer look at Electronic Arts’ acquisition. Videogame Workers United wants the deal’s approval to depend on job and studio protection. Growing opposition to the $55 billion acquisition of Electronic Arts is coming from Saudi Arabia’s sovereign wealth fund and private equity firms. The United Videogame Workers-Communication Workers of America (…
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