- 46 congressmen have penned an open letter to the FTC about concerns regarding Saudi Arabia’s Public Investment Fund’s acquisition of EA.
- The letter insisted that the deal be scrutinised, as it would harm workers and lead to studio closures.
- Shared ownership was also addressed, as the merger will make anti-labor policies more straightforward to implement.
In the era of gaming acquisitions, EA hasn’t been left behind, with Saudi Arabia’s Public Investment Fund (PIF) looking to buy out the company for $55 billion and take it private. The acquisition has the unanimous support of the gaming giant’s investors, with 99% approving the takeover.
However, sentiment in the community isn’t uniform, with many opposed to the deal due to concerns about competition. As it turns out, a handful of US Congressmen are also trying to block the $55 billion merger and have urged the FTC to review the ordeal with scrutiny.
Why it matters: Common ownership can lead to universal implementation of anti-labor policies and reduced competition in the industry.
46 US congressmen from the Democratic Party have signed an open letter to the head of the Federal Trade Commission, urging scrutiny of EA’s $55 billion acquisition by Saudi Arabia’s PIF on the grounds of protecting fair, competitive markets and jobs.
Led by Labor Caucus chairs Steven Horsford and Debbie Dingell, the letter states that the acquisition will result in layoffs and studio closures as the PIF seeks to cut costs wherever possible. Furthermore, the EA buyout breaks several antitrust laws, as the publisher is already one of the most dominant forces in the market.
Hence, this deal could shift power too far in one direction and reduce the long-term competitiveness of the gaming industry. Moreover, any merger that harms workers, wages, or labor demand violates the FTC’s guidelines, so the process should be scrutinized.
The congress members also highlighted how this deal promotes common ownership, as PIF holds stakes in Nintendo, Take-Two, and Embracer Group, making anti-labor policies easier to implement on a broader scale.
Do you think EA’s buyout by PIF should go through, or will it swing the pendulum too much in the industry? Tell us in the comments below or head to the Tech4Gamers forum for discussion.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devotedly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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