U.S. lawmakers have urged a thorough review of the pending US$55 billion EA buyout by Saudi Arabia amid concerns for the American gaming labour market.
Over forty United States (U.S.) congressmen have signed an open letter to the Federal Trade Commission (FTC), urging the agency to take a closer look at the ongoing sale of Electronic Arts (EA) to Saudi Arabia’s Public Investment Fund (PIF).
Gaming giant Electronic Arts–the publisher behind major franchises such as Need for Speed, The Sims, EA Sports FC, and Battlefield–initially announced a $55 billion buyout agreement last September. The deal has progressed over the past few months, with EA shareholders approving the transaction roughly a month ago. Regulatory approval from relevant government agencies is expected next.
A large portion of the gaming community, and even observers outside the industry, have reacted negatively to the proposed acquisition, criticising it as a form of “sportswashing” by the Saudi government. The buyout is expected to saddle EA with approximately US$20 billion in debt, raising concerns that the company may pursue significant cost-cutting measures, including mass layoffs.
These concerns have prompted U.S. lawmakers to urge the FTC to closely scrutinise the deal, in order to protect the domestic market and workforce.
U.S. lawmakers urge thorough review of EA buyout amid workforce concerns
In a press release shared by leaders of the Labor Caucus, more than forty lawmakers had signed an open letter outlining concerns about the $55 billion acquisition and its potential impact on the American market.
“We are committed to preserving fair, competitive labor markets and safeguarding American jobs, and given the impact of this acquisition on workers, labor market concentration, and the long-term competitiveness of the U.S. video game industry, we urge you to thoroughly review this transaction,” the letter states.
Lawmakers specifically cited the anticipated US$20 billion debt burden, noting that it “creates strong incentives for the acquiring firms to pursue further cost-cutting measures, including layoffs, offshoring, restructuring, or studio closures,” actions that they argue would jeopardise American jobs in an already fragile gaming labour market.
The letter also raises concerns about potential monopolistic behaviour, stemming from cross-ownership and major stakes across a wide range of markets, including sports leagues, sports betting platforms, talent management firms, and game development tools.
The PIF has been on a significant spending spree in recent years, making major acquisitions across industries such as sports, media, and gaming. Among its largest purchases were ESL and FACEIT, major esports entities responsible for hosting high-profile global tournaments.
With EA potentially joining this growing portfolio, lawmakers warn that the buyout “presents risks of self-preferencing and anticompetitive coordination across these lines of business,” which could “restrict worker mobility and reduce bargaining power for employees throughout the industry.”
The letter also references the FTC’s 2023 Merger Guidelines, emphasising the agency’s responsibility to “make clear of mergers harming workers, suppressing wages, or enabling dominant firms to reduce labor demand.”
“Given the scale of this acquisition and EA’s current dominance over the domestic video game labor market, we believe careful scrutiny of this deal is essential,” members of the Labor Caucus concluded.
The EA buyout, led by a consortium headed by the PIF, is currently expected to be finalised by June 2026, pending regulatory approval and the fulfilment of remaining conditions.
