Union Calls for U.S. Review of Saudi-Backed $55 Billion EA Buyout

A major U.S. labor union is urging federal regulators to block Electronic Arts Inc.'s $55 billion sale to a Saudi-backed consortium, escalating concerns about foreign investment in American technology assets and potential job losses in the videogame industry.

The Communications Workers of America (CWA) sent letters to the Federal Trade Commission and the Committee on Foreign Investment in the United States requesting a comprehensive review of the proposed acquisition. The deal, announced in late September, would transfer control of one of the world's largest game publishers to a group led by Saudi Arabia's Public Investment Fund, along with private-equity firms Silver Lake and Affinity Partners.

The intervention marks the latest challenge to what would rank among the largest acquisitions in gaming history. Sens. Richard Blumenthal (D., Conn.) and Elizabeth Warren (D., Mass.) have already voiced opposition to the transaction.

"This deal is not about innovation or growth for the U.S. economy—it's about handing control to a small group of powerful investors and putting thousands of jobs and sensitive consumer data at risk," CWA President Claude Cummings Jr. wrote in the letter.

Labor and National Security Concerns Over Foreign Gaming Investment

The union questioned the strategic rationale for the EA sale, noting that EA generated $7.5 billion in revenue in its latest fiscal year. The company, which publishes popular franchises including FIFA, Battlefield and The Sims, doesn't require external capital to remain competitive, according to the CWA.

PIF already holds significant stakes in major Western game companies including Nintendo, Capcom and Take-Two Interactive Software. The EA acquisition would give the sovereign wealth fund access to extensive consumer data and further expand its footprint in the U.S. gaming market, the union said.

The CWA warned that the deal could trigger widespread layoffs and studio closures. "If studios close or workers are laid off due to this deal, that would be a choice, not a necessity," Mr. Cummings said.

The gaming industry has already weathered substantial job cuts, with more than 20,000 workers laid off globally between 2023 and 2025 during post-pandemic restructuring. Recent Saudi-backed investments have preceded workforce reductions at other companies: ESL FACEIT Group eliminated 15% of its staff, while Embracer Group AB cut 8,000 positions after a Saudi-funded deal collapsed.

The scrutiny of EA sale reflects growing regulatory attention to foreign investment in entertainment and technology sectors. Regulators globally are examining large-scale transactions involving sovereign wealth funds, particularly those from nations with governance concerns, as these deals raise questions about data security, creative independence and soft-power influence over cultural industries that shape popular narratives and hold vast troves of consumer information.