The United Video Games union, which is supported by the Communications Workers of America, has officially contacted the US Federal Trade Commission. They are expressing strong opposition to the plan for private investors to purchase Electronic Arts. This group of investors includes Saudi Arabia’s Public Investment Fund along with several other investment companies.
The union published their letter on the Action Network platform. In it, they argue that EA is not a company in financial trouble. They state that any job losses resulting from this sale would be a deliberate choice made to increase profits for investors. They emphasize that cutting jobs would not be necessary to make the company stronger.
The letter concludes with a request for the public to sign an accompanying petition. It also asks members of the Federal Trade Commission to take action to stop the deal. The union is calling on regulators and elected officials to examine this transaction closely. They want to ensure that any approval protects jobs and maintains creative freedom within the company.
Back in December, shareholders of Electronic Arts voted to approve the proposed deal. This vote allowed private investors to move forward with buying the company. Following this approval, only US institutions like the Federal Trade Commission have the power to delay or prevent the acquisition from happening.
If the deal receives final approval, Electronic Arts will be almost entirely owned by the Saudi Arabian government’s wealth fund. Saudi Arabia has faced criticism in the past due to its history of human rights violations. This ownership situation has raised concerns among industry observers and workers alike.
There is some question about how likely it is that the US government will block this specific deal. While some government officials have criticized the transaction, reports suggest it may face little resistance. The Financial Times reported that the deal is expected to proceed smoothly. This is partly due to the involvement of Jared Kushner, who is the son-in-law of the current US president.
The acquisition deal is record-breaking in its financial scale. The group of investors, which includes Saudi Arabia’s investment fund and Donald Trump’s son-in-law, will pay a massive $55 billion to take the company private. This is an enormous amount of money for the new owners to recover.
Because of this high cost, senior leadership at Electronic Arts believes that embracing artificial intelligence will be the key to making their money back. They see AI technology as the road to generating the necessary returns on their huge investment. This approach suggests significant changes might be coming to how the company operates.
