Congress Demands Review of EA's $55B Saudi Sale

A coalition of 46 House Democrats is urging the Federal Trade Commission to scrutinize the landmark $55 billion sale of Electronic Arts to a consortium led by Saudi Arabia's sovereign wealth fund. The lawmakers, part of the Congressional Labor Caucus, argue the deal requires a thorough review before it can proceed.

The letter, sent to the FTC, raises significant concerns about the transaction's potential impact on the gaming industry's labor market. As the deal moves toward a projected closure in early 2027, these lawmakers are calling for immediate federal oversight to assess the risks.

The proposed acquisition would take Electronic Arts private in one of the largest transactions in the gaming industry's history. EA confirmed the sale agreement in September, with the buyer consortium comprising the Public Investment Fund of Saudi Arabia, investment firm Silver Lake, and Affinity Partners.

The transaction is valued at a staggering $55 billion. While the deal has been announced, it is not yet finalized. The expected timeline for closing is set for the first quarter of 2027, a period that will likely involve intense regulatory examination.

The scale of this acquisition places it at the center of a broader debate about foreign investment in critical American technology and entertainment sectors. The involvement of a sovereign wealth fund adds a layer of geopolitical complexity to the standard merger review process.

The primary focus of the congressional letter is the potential labor market consequences of the acquisition. The lawmakers are asking the FTC to investigate several specific areas of concern that could affect thousands of workers.

The letter explicitly requests an examination of:

• EA's existing power to set wages for employees
• The likelihood of significant layoffs after the transaction closes
• The degree of labor-market concentration in relevant geographic areas
• The role of cross-ownership in shaping labor outcomes

These concerns stem from the belief that taking EA private could lead to cost-cutting measures that impact the workforce. The lawmakers argue that without proper scrutiny, the deal could worsen an already unstable industry landscape.

The congressional effort has already garnered significant backing from organized labor. The Communications Workers of America union has publicly endorsed the call for a federal review, signaling broader industry apprehension about the deal.

This support aligns with a separate petition from the United Video Games union. The petition, which has been circulated among industry professionals, calls on regulators and elected officials to scrutinize the transaction closely.

Scrutinize this deal and ensure that any path forward protects jobs and preserves creative freedom.

Both unions emphasize the need to safeguard workers' rights and maintain the creative integrity of game development studios under new ownership. Their involvement highlights the human element behind the massive financial transaction.

The letter from the Congressional Labor Caucus places the Federal Trade Commission at the center of the next steps. The FTC will be responsible for determining whether a formal investigation is warranted and what conditions, if any, should be placed on the acquisition.

The outcome of this review could set a precedent for future foreign investments in the U.S. gaming and technology sectors. Regulators must balance economic interests with concerns over market dominance and labor stability.

As the 2027 deadline approaches, the scrutiny from both lawmakers and unions is expected to intensify. The deal's fate now rests not only on financial considerations but also on its perceived impact on the American workforce and creative industry.

The proposed sale of Electronic Arts represents a pivotal moment for the gaming industry, blending massive financial scale with complex regulatory and labor questions. The call for a federal review underscores the high stakes involved for workers and the broader market.

With the Public Investment Fund and its partners at the helm, the deal's progression will be closely watched by investors, employees, and policymakers alike. The coming months will determine whether the acquisition proceeds as planned or faces significant regulatory hurdles.

Ultimately, the FTC's decision will shape the future of one of the world's largest gaming companies and could influence how similar transactions are evaluated in the years to come.