The acquisition of Electronic Arts by Saudi Arabia’s Public Investment Fund, Jared Kushner's Affinity Partners, and private equity firm Silver Lake could be put on hold, if a Democrat-led Labor Caucus has anything to say about it. As it stands, the deal is set to close in 2027.
The Labor Caucus sent a letter signed by Democrats urging Federal Trade Commission Chair Andrew Ferguson to review the planned acquisition.
“We are committed to preserving fair, competitive labor markets and safeguarding American jobs, and given the impact of this acquisition on workers, labor market concentration, and the long-term competitiveness of the U.S. video game industry, we urge you to thoroughly review this transaction,” the lawmakers wrote in the letter.
Should the acquisition go through, PIF would ostensibly have full control over one of the largest video game developers and publishers in the US. The lawmakers are rightfully worried about the impact the acquisition could have on EA employees.
“Additionally, we are concerned that the proposed buyout is expected to be financed with at least $20 billion in debt, which creates strong incentives for the acquiring firms to pursue further cost-cutting measures, including layoffs, offshoring, restructuring, or studio closures,” the...
