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EA Faces Serious Problem: U.S. Congressmen Oppose Saudi Arabia as Company Owner

More than 40 U.S. congressmen are demanding that the Federal Trade Commission (FTC) thoroughly scrutinize the deal to sell Electronic Arts (EA) to the Saudi Arabian investment fund (PIF). In their appeal, they express serious concern about the consequences for American workers in the gaming industry, which is already experiencing mass layoffs.

Particular alarm is raised by the $20 billion debt that would transfer to EA after the sale. Lawmakers believe this would create an incentive for the new owners to conduct further layoffs, restructuring, and studio closures to achieve a quick return on investment.

The congressmen cite FTC antitrust rules, which prohibit deals that harm workers. Given the size of the deal ($55 billion), they insist on a detailed analysis of its impact on the labor market and demand that the regulator conduct a full investigation.