Late last year, Saudi Arabia's Public Investment Fund, Jared Kushner's Affinity Partners, and the private equity firm Silver Lake made a $55 billion deal to purchase Electronic Arts and take the video game publisher private. Now, the Communication Workers of America's United Video Games union has approached the US Federal Trade Commission to share its opposition to the deal.
According to Eurogamer, the UVG's letter calls out EA for its plans to cut down on its staff by calling the cuts "a choice, not a necessity, made to pad investors' pockets--not to strengthen the company." Since EA is one of the biggest video game publishers in the world, the letter also notes that it's not "a struggling company."
The UVG asked the FTC members to "scrutinize this deal and ensure that any path forward protects jobs, and preserves creative freedom."
In a different political landscape, that might have been more effective. But given the fact that Kushner is President Donald Trump's son-in-law, it's unlikely the government will take any action to stop the deal. Senators Richard Blumenthal and Elizabeth Warren have both voiced their concerns about "foreign influence" on EA if the deal goes through. However, neither senator has any say into whether the deal will advance. That call will come down to the FTC and its' largely Trump-appointed board.
Because of concerns about Saudi Arabia's poor human-rights records, the creative team behind The Sims franchise recently issued a statement saying that their collective values of inclusion haven't changed. That said, the final approval will likely leave Saudi Arabi total control over the company. EA has promised that it will retain creative control of the company after the sale. But unless that's guaranteed in the sale contract between EA and its new owners, that may not be the case upon completion of the deal.
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According to Eurogamer, the UVG's letter calls out EA for its plans to cut down on its staff by calling the cuts "a choice, not a necessity, made to pad investors' pockets--not to strengthen the company." Since EA is one of the biggest video game publishers in the world, the letter also notes that it's not "a struggling company."
The UVG asked the FTC members to "scrutinize this deal and ensure that any path forward protects jobs, and preserves creative freedom."
In a different political landscape, that might have been more effective. But given the fact that Kushner is President Donald Trump's son-in-law, it's unlikely the government will take any action to stop the deal. Senators Richard Blumenthal and Elizabeth Warren have both voiced their concerns about "foreign influence" on EA if the deal goes through. However, neither senator has any say into whether the deal will advance. That call will come down to the FTC and its' largely Trump-appointed board.
Because of concerns about Saudi Arabia's poor human-rights records, the creative team behind The Sims franchise recently issued a statement saying that their collective values of inclusion haven't changed. That said, the final approval will likely leave Saudi Arabi total control over the company. EA has promised that it will retain creative control of the company after the sale. But unless that's guaranteed in the sale contract between EA and its new owners, that may not be the case upon completion of the deal.
Source