US Congress Deeply Concerned About EA Deal with Saudi Investment Fund
The high-profile deal to sell Electronic Arts to the Saudi state investment fund (PIF) for $55 billion may face significant hurdles. 46 members of the US House of Representatives from the Democratic Party have sent a letter to Treasury Secretary Janet Yellen and Attorney General Merrick Garland urging a thorough review of the transaction.
The statement notes that in recent years, the industry has faced a number of challenges that have resulted in mass layoffs. Moreover, EA has already cut over 1,700 jobs and significantly reduced the average wage level since 2023.
A separate mention is made of the $20 billion debt, which could prompt the company to further reduce costs through new layoffs, studio closures, outsourcing development abroad, and so on.
For our part, we recall that EA shareholders approved the merger last year. According to the company's CEO Andrew Wilson, the deal will accelerate innovation and growth to build the "future of the entertainment industry."