One of the most well-known video game companies, Electronic Arts, recently confirmed a $55 billion take-private deal that would see the US company be acquired by a trio of investors, with Saudi Arabia’s Public Investment Fund (PIF) taking the majority stake. Joining PIF in what would be the largest leveraged buyout transaction in history, is the private equity company, Silver Lake, and the investment firm, Affinity Partners, which was founded by US President Donald Trump’s son-in-law, Jared Kushner. The record-breaking deal has raised concerns not only from EA’s staff who are fearful of layoffs, but from US senators who warn of foreign influence and a risk to national security. US Senators Urge Foreign Investment Committee To Investigate EA Buyout In a letter to Scott Bessent, Secretary of the Treasury, and Chair of the Committee on Foreign Investment, United States Senators Elizabeth Warren and Richard Blumenthal outlined their concerns regarding the deal. “We write with profound concern about the foreign influence and national security risks posed by the potential acquisition of American video game producer Electronic Arts (EA) by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake Group, L. L. C. (Silver Lake), and Jared Kushner’s Affinity Partners.” Electronic Arts, the publishers behind popular games such as The Sims, Apex Legends, Battlefield, Titanfall, and the entire EA Sports catalog, have created a platform that reaches gamers across the world, and one of the main concerns raised by Warren and Blumenthal focuses on the influence video games have, and what EA’s new owners plan to do with it. Saudi Arabia is seeking to normalize its global image, expand its cultural reach, and gain leverage in spaces that shape how billions of people connect and interact. According to EA’s press release, EA will give up 100% of the company for $36 billion in total from the investment consortium, along with $20 billion of debt financing from JPMorgan Chase Bank N. A. This deal would turn EA into a private company, and they would no longer be required to report their activities to the Securities and Exchange Commission. The letter penned by US Senators Warren and Blumenthal says PIF has a reputation for being used as a strategic arm of the Saudi Government, and they are concerned about the use of personal data, AI research, and cultural and political influence under new ownership. “The PIF’s control over EA’s operations could extend to influencing or directing the company’s design, features, and product decisions to advance the Saudi government’s specific and long-term objectives.” The transaction is subject to customary closing conditions, but it has been approved by EA’s Board of Directors, and is expected to close in the first quarter of 2027’s fiscal year.
https://www.dualshockers.com/ea-55-billion-sale-national-security-risks/