The billion acquisition of Electronic Arts (EA) by Saudi Arabia’s Public Investment Fund, alongside private equity firms, is encountering significant resistance. The United Videogame Workers-CWA union has issued a statement urging regulators and lawmakers to prioritize the protection of jobs, the preservation of creative freedom, and the accountability of decision-making to the workers who contribute to EA’s success.
Concerns Over Job Security and Creative Freedom
In its statement, the union emphasized that EA is not in distress; with annual revenues of .5 billion and profits reaching billion each year, it stands as one of the largest video game developers and publishers globally. However, the union voiced particular apprehension regarding the fate of EA studios that may be deemed “less profitable” following the acquisition. This concern is heightened by the backdrop of significant layoffs across the industry in recent years, even among companies that appear to be thriving.
BioWare, a studio renowned for its role-playing games, has emerged as a potential casualty of this acquisition. While it has not delivered a major hit in a decade, the studio’s future may be jeopardized further due to its progressive narrative approach. Former BioWare lead writer Trick Weekes highlighted that the studio’s themes, particularly those addressing LGBTQ+ issues, might not align with the values of a company owned by Saudi Arabia, a nation where same-sex relationships remain criminalized. This has led some employees to speculate that BioWare’s days may be numbered.
The union articulated, “If jobs are lost or studios are closed due to this deal, that would be a choice, not a necessity, made to pad investors’ pockets—not to strengthen the company.” They have called for regulators and elected officials to scrutinize the deal closely, ensuring that any future path safeguards jobs, maintains creative freedom, and holds decision-making accountable to the workforce that drives EA’s success.
In a parallel development, U.S. senators Richard Blumenthal and Elizabeth Warren have also expressed their concerns regarding the potential national security risks associated with the acquisition. Despite these calls for caution, the likelihood of regulatory intervention appears limited. The new head of the FTC has indicated a shift towards a less aggressive stance on mergers compared to his predecessor, Lina Khan. Additionally, the involvement of Jared Kushner in facilitating the deal raises questions about the feasibility of regulatory pushback, as noted by the senators in their correspondence.
While the union recognizes that regulatory action alone will not safeguard the video game industry, it has urged workers to continue organizing to ensure they have a voice in how their workplaces are managed. In a proactive step, the United Videogame Workers union has initiated a petition aimed at prompting regulators to closely examine the acquisition, which will be presented to the U.S. Federal Trade Commission.
