US Congress members call for 'thorough review' of EA's $55 billion sale

"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. Before the official change of ownership, the 46 House Democrats who signed the letter to the FTC are calling for more scrutiny into the impacts of the deal."

"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. The letter already earned support from the Communications Workers of America union, who also supported a petition from the United Video Games union. As spotted by , the petition calls on regulators and elected officials to "scrutinize this deal and ensure that any path forward protects jobs and preserves creative freedom.""

Forty-six Democratic members of Congress called on the Federal Trade Commission to thoroughly review Electronic Arts' proposed $55 billion acquisition by the Public Investment Fund, Silver Lake, and Affinity Partners. The acquisition was confirmed in September and is expected to close in the first quarter of 2027. Lawmakers expressed concern about potential worsening of an already unstable industry, additional layoffs, and increased market dominance by EA. The request highlights worries about EA's wage-setting power, post-transaction layoffs, labor-market concentration across geographies and occupations, and effects of cross-ownership on labor outcomes. Major unions voiced support for regulatory scrutiny and protections for jobs and creative freedom.

Read at Engadget