The CWA urges the FTC and CFIUS to thoroughly examine the EA acquisition to safeguard workers, consumers, and "the future of the game industry"
The Communications Workers of America's president has reached out to authorities including the Federal Trade Commission and the Committee on Foreign Investment in the U.S. to request a thorough examination of the proposed acquisition of Electronic Arts.
Last month, Electronic Arts verified that it agreed to be purchased by a consortium of investors comprising Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity Partners.
This group aims to fully acquire the video game designer, with the PIF incorporating its current shares in the enterprise. If concluded by the first quarter of FY27, it will mark the most significant all-cash private takeover to date.
PIF is managed by Prince Mohammed bin Salman Al Saud, and Affinity Partners was created by Jared Kushner, Donald Trump's son-in-law.
Terming the deal as extraordinary, Claude Cummings Jr., has urged federal oversight to prevent foreign and private equity interests from disrupting the U.S. video game sector.
Concerns highlighted by Cummings Jr. include labor market competition due to the gaming industry's consolidation, national security threats from potential foreign access to U.S. gamers' data, and the influence of foreign ownership over EA’s technology and partnerships.
Cummings Jr. argues, "This transaction isn't focused on U.S. economic advancement - it's about consolidating power among a select group of investors, risking job losses and compromising sensitive consumer data."
He has called on CFIUS Chairman Scott Bessent and FTC Chairman Andrew N. Ferguson to meticulously evaluate the transaction to safeguard U.S. labor, consumer interests, and the video gaming sector's future.
Additionally, Electronic Arts announced its financial results for the second quarter today, indicating a drop in sales and revenue, although their sports-related franchises have experienced growth.