Saudi Arabia's Public Investment Fund, Jared Kushner's Affinity Partners and private equity firm Silver Lake's acquisition of Electronic Arts could be put on hold if the Democratic-led Labor caucus has anything to say about it. As of now, the deal is scheduled to be completed in 2027.
The Labor caucus sent a letter signed by Democrats urging Federal Trade Commission (FTC) Chairman Andrew Ferguson to review the planned acquisition.
“We are committed to preserving fair and competitive labor markets and protecting American jobs, and we urge you to thoroughly review this transaction given its impact on workers, labor market concentration, and the long-term competitiveness of the U.S. video game industry,” the lawmakers wrote.
If the acquisition goes through, PIF would ostensibly have full control of one of the country's largest video game developers and publishers. Lawmakers are understandably concerned about the impact the acquisition could have on EA employees.
“Furthermore, we anticipate that the proposed acquisition will involve at least $20 billion in debt, creating strong incentives for the acquiring company to pursue additional cost-cutting measures, including layoffs, offshoring, restructuring, or studio closures,” the lawmakers continued.
EA, like many companies in the industry, recently laid off 670 people in 2024, with additional layoffs in April 2025. An acquisition of this size, especially with the debt proposed at the time of acquisition, could lead to additional layoffs.
Saudi Arabia will reportedly own almost all of EA after the acquisition
Saudi Arabia's public investment fund would acquire almost all of Electronic Arts if its current acquisition plan goes through, according to a new report.
Lawmakers are also concerned that the acquisition could strengthen EA's control of the labor market through its dominance in the video game industry as well as its existing holdings in other industries.
EA is not the only developer in which PIF has a stake, but it is probably the largest, giving it greater control over the company's culture and development.
Saudi Arabia has different cultural norms than the United States. For example, under Sharia law, identifying as a member of the LGBTQ+ community is punishable by death. It's not yet known whether PIF will apply a cultural lens to the games EA produces, but it could have an impact on studios like Dragon Age: The Veilguard developer BioWare and Sims developer Maxis, which frequently feature members of the LGBTQ+ community.
The letter was signed by 46 House Democrats and supported by the Communications Workers of America (CWA).
