The acquisition of Electronic Arts by Saudi Arabia's sovereign wealth fund, Jared Kushner's Affinity Partners and private equity firm Silver Lake could be delayed if a Democrat-led Labor caucus has a say. The deal is currently scheduled to close in 2027.
The Labor caucus sent a letter signed by Democrats urging Federal Trade Commission Chairman Andrew Ferguson to review the planned acquisition.
“We are committed to maintaining fair, competitive labor markets and protecting 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.
If the acquisition were to go through, PIF would reportedly have full control over one of the largest video game developers and publishers in the US. Lawmakers are rightly concerned about the impact the acquisition could have on EA employees.
“Furthermore, we are concerned that the proposed buyout is expected to be financed with at least $20 billion in debt, creating strong incentives for acquiring firms to pursue other cost-cutting measures, including layoffs, offshoring, restructuring or closing studios,” the lawmakers continued.
EA, like many others in the industry in recent years, has laid off 670 people in 2024, followed by another layoff in April 2025. An acquisition of this size — especially with the proposed debt buyout — could lead to more layoffs.
Saudi Arabia will reportedly own almost all of EA after the acquisition
A new report claims that Saudi Arabia's Public Investment Fund will take over almost all of Electronic Arts if the current buyout plan goes through.
Lawmakers also worry that the acquisition could increase EA's control over the labor market, with its dominance of the video game industry as well as its existing holdings in other industries.
While EA won't be the only developer PIF has a stake in, it would be its largest, which would likely give it more control over company culture and development.
Saudi Arabia has different cultural norms than the US. For example, under Sharia law, identifying as a member of the LGBTQ+ community is punishable by death. Whether PIF imposes its cultural views on the games EA produces remains to be seen, but it could impact studios like Dragon Age: The Veilguard developer BioWare and Sims developer Maxis, which often feature members of the LGBTQ+ community.
The letter was signed by 46 House Democrats and endorsed by the Communications Workers of America (CWA).
