US Lawmakers Urge FTC to Scrutinize EA's $55 Billion Sale
As Electronic Arts (EA) prepares to go private in a massive $55 billion sale, some US lawmakers are sounding the alarm over potential labor market consequences. In a letter to the Federal Trade Commission (FTC), 46 House Democrats from the Congressional Labor Caucus have urged regulators to conduct a thorough review of the acquisition by Public Investment Fund, Saudi Arabia's sovereign wealth fund, Silver Lake and Affinity Partners.
The lawmakers expressed concerns that the deal could exacerbate an already unstable industry, lead to more layoffs, and increase market dominance for EA. They specifically called on the FTC to investigate the impact of the proposed acquisition on labor markets, including EA's existing wage-setting power, the likelihood of post-transaction layoffs, and the degree of labor-market concentration in relevant geographic and occupational markets.
The letter has earned support from the Communications Workers of America union, as well as a petition from the United Video Games union. The unions are calling on regulators and elected officials to "scrutinize this deal and ensure that any path forward protects jobs and preserves creative freedom."
The proposed sale is expected to close in the first quarter of 2027, but for now, lawmakers are pushing for more transparency and oversight before the deal goes through. As the deal moves closer to completion, concerns over its potential impact on workers and the gaming industry as a whole continue to grow.
As Electronic Arts (EA) prepares to go private in a massive $55 billion sale, some US lawmakers are sounding the alarm over potential labor market consequences. In a letter to the Federal Trade Commission (FTC), 46 House Democrats from the Congressional Labor Caucus have urged regulators to conduct a thorough review of the acquisition by Public Investment Fund, Saudi Arabia's sovereign wealth fund, Silver Lake and Affinity Partners.
The lawmakers expressed concerns that the deal could exacerbate an already unstable industry, lead to more layoffs, and increase market dominance for EA. They specifically called on the FTC to investigate the impact of the proposed acquisition on labor markets, including EA's existing wage-setting power, the likelihood of post-transaction layoffs, and the degree of labor-market concentration in relevant geographic and occupational markets.
The letter has earned support from the Communications Workers of America union, as well as a petition from the United Video Games union. The unions are calling on regulators and elected officials to "scrutinize this deal and ensure that any path forward protects jobs and preserves creative freedom."
The proposed sale is expected to close in the first quarter of 2027, but for now, lawmakers are pushing for more transparency and oversight before the deal goes through. As the deal moves closer to completion, concerns over its potential impact on workers and the gaming industry as a whole continue to grow.
. But seriously, these lawmakers are right to question the impact on labor markets. I mean, if one company gets even more dominant in the market, it's only natural that some jobs might get cut 
. The fact that unions like CWA and UVG are supporting this effort shows that there's still a strong voice for workers in the gaming industry 
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. But with 46 House Democrats speaking out, it looks like they're not going to let EA slide quietly into the private sector 
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. If one company has even more control over the market, might we see less diversity in games and more of the same old stuff getting churned out? It's not like we need another Assassin's Creed or Madden NFL game 
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It's like, imagine a monopoly on games - that sounds sketchy, right? And those lawmakers are right to be concerned about job security too... if they start cutting wages and stuff to cut costs, it'll affect everyone 
. I think lawmakers are wise to push for more scrutiny from the FTC – transparency is key in these matters 
. The fact that unions like CWA and United Video Games are speaking out highlights the need for collective action and advocacy to protect workers' rights in this space 
. What really gets me is that they're not even giving anyone a say in how this deal will affect them 
. I'm all for business being done and making deals happen 
I mean, what if they just lay off all the workers and keep everything under their control? It's not good for gamers at all 
I'm with the unions on this one 
We need to keep an eye on big corp's, make sure they don't step on our toes 
and let's not forget about the unions getting involved - sounds like someone's trying to shape the narrative to justify keeping workers under some sort of control 
Just kidding ( sort of). Seriously though, if this deal goes through, it'll be like the whole gaming industry is getting owned by one giant corporation. Labor market consequences are already sounding super sketchy to me... more layoffs = less talented devs and QA testers to create sick games for us to play 
. Can't we just have a break from corporate takeovers for once? 
. If they get even more control over the market, it could lead to some major layoffs and a whole lot of job insecurity for gamers and developers alike 
. The unions are right on point with their petition, we need more transparency and oversight before this deal goes through 
. I'm keeping an eye on this one, might have to make some changes to my gaming budget if things get too crazy 