"Before Electronic Arts goes private in a groundbreaking sale, some US lawmakers are pleading for some federal oversight. Democratic members of the US Congress, as part of the Congressional Labor Caucus, penned a letter asking the Federal Trade Commission to "thoroughly review" the $55 billion acquisition of EA. EA confirmed the sale to the Public Investment Fund, or the sovereign wealth fund of Saudi Arabia, Silver Lake and Affinity Partners in September, but the deal is expected to close in the first quarter of 2027."
"The letter noted some of the most consequential effects, including the worsening of an unstable industry, the potential for more layoffs and increased market dominance for EA. "We respectfully urge the Commission to conduct a thorough investigation into the labor market consequences of this proposed acquisition, including EA's existing wage-setting power, the likelihood of post-transaction layoffs, the degree of labor-market concentration in relevant geographic and occupational markets, and the role of cross-ownership in shaping labor outcomes," the letter read."
Forty-six House Democrats, organized through the Congressional Labor Caucus, asked the Federal Trade Commission to thoroughly review the $55 billion acquisition of Electronic Arts. The buyers include the Public Investment Fund of Saudi Arabia, Silver Lake and Affinity Partners, with the deal expected to close in the first quarter of 2027. The lawmakers expressed concerns about worsening industry instability, potential post-transaction layoffs, increased market dominance by EA, and existing wage-setting power. The letter also requested analysis of labor-market concentration across geographic and occupational markets and the effects of cross-ownership. The Communications Workers of America and a United Video Games petition supported further scrutiny to protect jobs and creative freedom.
Read at Engadget
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