Electronic Arts Sale Under Microscope

Business

16 October 2025 13:10

Electronic Arts (EA) sale has drawn sharp criticism from U.S. lawmakers, who are raising alarms over potential national security risks and foreign influence tied to the acquisition.

At the end of September, Electronic Arts one of the most influential publishers in the gaming industry was announced as the target of a takeover bid by a Saudi Arabian-led investment consortium. The group is spearheaded by the Public Investment Fund (PIF) of Saudi Arabia and includes Silver Lake, a major U.S.-based private equity firm, as well as Affinity Partners, a fund founded by Jared Kushner, the son-in-law of former U.S. President Donald Trump.

The acquisition, reportedly valued at over $10 billion above EA’s market value, is being positioned as a landmark privatization deal. But it’s also prompted immediate pushback in Washington.

In a letter addressed to U.S. Secretary of the Treasury Janet Yellen, Senators Elizabeth Warren and Richard Blumenthal expressed “profound concern” over the transaction, calling on the Committee on Foreign Investment in the United States (CFIUS) to conduct a comprehensive review of the proposed 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,” the letter states.

“We urge you and the Committee to apply searching scrutiny to this unprecedented, proposed foreign privatization of a major American technology and entertainment company.”

The senators argue that the PIF operates as a strategic extension of the Saudi government, suggesting that the kingdom is using the gaming industry to expand its soft power and international influence. According to the letter, the investment group’s willingness to pay a premium for EA, whose stock has “stagnated for half a decade,” signals a motive beyond financial return.

Warren and Blumenthal also highlighted concerns about data privacy, noting EA’s access to sensitive personal information from millions of users globally. In their view, the acquisition could create vulnerabilities by placing that data under the indirect control of a foreign government.

Additionally, the letter raised fears that EA’s corporate transparency would be diminished if taken private, reducing public oversight of its operations and decision-making processes.

This development mirrors recent scrutiny of other major gaming acquisitions, such as Microsoft’s $69 billion purchase of Activision Blizzard, which was subjected to months of legal and regulatory challenges in the U.S. and abroad.

Tags: Electronic Arts

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