Federal Trade Commission to Review EA Deal

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26 January 2026 09:06

A group of 46 House Democrats from the Congressional Labor Caucus has sent a letter to the Federal Trade Commission raising red flags about the proposed $55 billion buyout of Electronic Arts. The deal, led by Saudi Arabia's Public Investment Fund along with private equity firms Silver Lake and Affinity Partners, has already cleared shareholder approval but still faces regulatory hurdles.

The letter, dated January 22, 2026, calls on FTC Chair Andrew Ferguson to give the transaction a close look. It highlights worries about how the acquisition could hurt workers in the video game industry, especially given the heavy debt involved.

The lawmakers point out that at least $20 billion of the financing comes in the form of debt. That kind of borrowing often pushes new owners to cut costs aggressively to pay it back. They warn this could mean more layoffs, moving jobs overseas, major restructurings, or even shutting down studios entirely.

The concerns build on Electronic Arts recent track record. The company has already cut more than 1,700 jobs in the United States since 2023, part of broader industry layoffs that have topped 35,000 positions since 2022.Beyond the debt pressure, the Caucus expresses alarm over what they call potential "labor market dominance" for EA after the deal closes. They note the buyers' existing ties in related fields. For instance, Silver Lake has connections to talent agency WME and sports organization TKO Group Holdings, while the PIF owns LIV Golf. These links could give the new owners influence over sports licenses, entertainment, and other areas that EA games depend on, possibly making it harder for workers to move between opportunities.

The letter also references the FTC's own 2023 Merger Guidelines. Those rules say that mergers can violate antitrust laws if they harm workers by suppressing wages or letting dominant companies cut back on labor needs."Given the scale of this acquisition and EA’s current dominance over the domestic video-game labour market, we believe careful scrutiny of this deal is essential," the Caucus wrote.

The group, backed by the Communications Workers of America (the union representing many US video game bargaining units), wrapped up their message with a clear request.

"We respectfully urge the Commission to conduct a thorough investigation into the labour market consequences of this proposed acquisition, including EA’s existing wage-setting power, the likelihood of post-transaction layoffs, the degree of labour-market concentration in relevant geographic and occupational markets, and the role of cross-ownership in shaping labour outcomes. Workers deserve a fair, competitive marketplace where their skills are valued."

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Federal Trade Commission to Review EA Deal

More

26 January 2026 09:06

Tags: Federal Trade Commission Electronic Arts

A group of 46 House Democrats from the Congressional Labor Caucus has sent a letter to the Federal Trade Commission raising red flags about the proposed $55 billion buyout of Electronic Arts. The deal, led by Saudi Arabia's Public Investment Fund along with private equity firms Silver Lake and Affinity Partners, has already cleared shareholder approval but still faces regulatory hurdles.

The letter, dated January 22, 2026, calls on FTC Chair Andrew Ferguson to give the transaction a close look. It highlights worries about how the acquisition could hurt workers in the video game industry, especially given the heavy debt involved.

The lawmakers point out that at least $20 billion of the financing comes in the form of debt. That kind of borrowing often pushes new owners to cut costs aggressively to pay it back. They warn this could mean more layoffs, moving jobs overseas, major restructurings, or even shutting down studios entirely.

The concerns build on Electronic Arts recent track record. The company has already cut more than 1,700 jobs in the United States since 2023, part of broader industry layoffs that have topped 35,000 positions since 2022.Beyond the debt pressure, the Caucus expresses alarm over what they call potential "labor market dominance" for EA after the deal closes. They note the buyers' existing ties in related fields. For instance, Silver Lake has connections to talent agency WME and sports organization TKO Group Holdings, while the PIF owns LIV Golf. These links could give the new owners influence over sports licenses, entertainment, and other areas that EA games depend on, possibly making it harder for workers to move between opportunities.

The letter also references the FTC's own 2023 Merger Guidelines. Those rules say that mergers can violate antitrust laws if they harm workers by suppressing wages or letting dominant companies cut back on labor needs."Given the scale of this acquisition and EA’s current dominance over the domestic video-game labour market, we believe careful scrutiny of this deal is essential," the Caucus wrote.

The group, backed by the Communications Workers of America (the union representing many US video game bargaining units), wrapped up their message with a clear request.

"We respectfully urge the Commission to conduct a thorough investigation into the labour market consequences of this proposed acquisition, including EA’s existing wage-setting power, the likelihood of post-transaction layoffs, the degree of labour-market concentration in relevant geographic and occupational markets, and the role of cross-ownership in shaping labour outcomes. Workers deserve a fair, competitive marketplace where their skills are valued."

More:ESL FACEIT Group Partners with CHEXX

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