Cole Palmer for EA FC 26
EA's $55 Billion Saudi Buyout Faces U.S. Senator Pushback
Blumenthal, Warren demand federal review of videogame giant's privatization, citing data security and foreign influence concerns
Highlights
- Senators Blumenthal and Warren demand a federal review of EA’s $55B Saudi-funded privatization deal.
- Lawmakers warn that Saudi state ownership could endanger U.S. consumer data and national interests.
- Jared Kushner’s involvement via Affinity Partners draws conflict-of-interest concerns amid global gaming consolidation.
Two U.S. senators are calling for a federal investigation into Electronic Arts' $55 billion privatization, warning that the deal backed by Saudi Arabia's sovereign wealth fund could expose American consumers' data and compromise national security.
In an Oct. 14 letter to the Treasury Department and the Committee on Foreign Investment in the United States, Sens. Richard Blumenthal and Elizabeth Warren said that the transaction raises concerns about foreign control of sensitive consumer data.
Electronic Arts, maker of the FIFA and Madden franchises, holds personal and behavioral data on more than 600 million players world-wide. The senators argue that placing such assets under state-linked foreign ownership creates a potential "national vulnerability."
The lawmakers also questioned the deal's pricing, noting EA shares fell sharply in January, erasing roughly $6 billion in market value.
Saudi Arabia PIF and Jared Kushner's Role in Electronic Arts Deal
On Sept. 29, EA confirmed it had agreed to a $55 billion leveraged buyout led by Silver Lake, Saudi Arabia's Public Investment Fund and Affinity Partners, the investment firm founded by Jared Kushner.
The involvement of Kushner's firm has drawn scrutiny over potential conflicts of interest stemming from his diplomatic ties to Saudi Arabia during his time in the Trump administration.
EA executives have said the deal won't affect operations or studio independence. Video game labor unions have also separately petitioned the Federal Trade Commission to impose worker protections, citing layoffs and tighter controls following previous PIF-backed gaming acquisitions.
Author
Kamalikaa Biswas is a content writer at Outlook Respawn specializing in pop culture. She holds a Master's in English Literature from University of Delhi and leverages her media industry experience to deliver insightful content on the latest youth culture trends.
