Highlights
- The Congressional Labor Caucus urges FTC intervention, warning that $20B in debt financing will drive aggressive layoffs.
- Saudi PIF's 93.4% stake raises national security alarms regarding data privacy and fears of censorship for LGBTQ+ themes.
- Cross-ownership involving Silver Lake and Affinity Partners sparks concerns over market concentration and reduced worker mobility.
The massive $55 billion acquisition of Electronic Arts (EA) by a Saudi-led consortium could be put on hold if a Democrat-led Labor Caucus has anything to say about it. In a significant escalation of political pressure, a coalition of 46 U.S. lawmakers is actively urging the Federal Trade Commission (FTC) to intervene in the deal, which is currently set to close in 2027. In a formal letter sent this week to FTC Chair Andrew Ferguson, members of the Congressional Labor Caucus expressed severe concerns that the transaction would not only stifle competition but also irreparably harm the video game workforce.
The primary objection raised by the lawmakers focuses on the human cost of the deal's financial structure. The letter, led by Labor Caucus co-chairs Representatives Steven Horsford, Debbie Dingell, Mark Pocan, and Donald Norcross, highlights that the buyout is heavily leveraged. The deal involves at least $20 billion in debt financing provided by JPMorgan Chase alongside $36 billion in equity. The lawmakers argue that this massive debt load creates strong incentives for the new owners to aggressively cut costs to service loans.
“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. They warned that the debt creates a scenario ripe for "further cost-cutting measures, including layoffs, offshoring, restructuring, or studio closures," as stated in the letter available on Congressional Labor Caucus website.
These fears are grounded in recent history. EA, like many in the industry, has already eliminated more than 1,700 U.S. jobs since 2023. This includes a round that hit 670 positions in 2024, followed by more layoffs in April 2025. The Communication Workers of America (CWA) union has supported the lawmakers' push, echoing fears that transitioning EA to a private entity under such financial pressure will only accelerate these trends.
EA
National Security and Data Privacy Concerns
Beyond the economic impact, the acquisition has drawn scrutiny regarding national security and foreign influence. The purchasing group is led by Saudi Arabia’s Public Investment Fund (PIF), which is set to acquire a staggering 93.4% stake in EA. With EA’s 700 million users logging over 13 billion hours of playtime in 2024, lawmakers fear the Saudi state could gain access to vast amounts of sensitive personal data for surveillance or propaganda purposes without the oversight of the SEC, as reported by GameRant.
There are also significant cultural concerns regarding the shift in ownership. Saudi Arabia operates under different cultural norms than the U.S.; for example, under Sharia law, identifying as a member of the LGBTQ+ community is punishable by death. While it remains to be seen if the PIF would impose its cultural views on development, the acquisition could impact studios like BioWare, known for Dragon Age: The Veilguard, and The Sims developer Maxis, both of which frequently feature LGBTQ+ themes and characters.
The lawmakers also pointed to complex antitrust issues involving the buyers' other business interests. The consortium also includes private equity firm Silver Lake and Jared Kushner’s Affinity Partners. The letter warns of cross-ownership risks, noting that Silver Lake has deep ties to talent agency WME and the TKO Group, while the PIF owns LIV Golf. Lawmakers argue that placing EA under the same umbrella as these major sports and sports-related video games business lines could lead to anti-competitive coordination, potentially restricting worker mobility and reducing bargaining power across the sector.
Despite the mounting political pressure, the acquisition has already cleared significant hurdles. EA shareholders voted overwhelmingly to approve the takeover at $210 per share in December 2025. If the deal survives regulatory review, it will mark one of the largest transactions in gaming history, ending EA's 36-year run as a public company.
