Unionized EA Employees Demand Scrutiny of $55B Saudi-Backed Takeover

Unionized Electronic Arts (EA) staffers — members of the industry-wide video game workers’ union UVW-CWA — have issued a formal statement opposing the proposed $55 billion acquisition that would take EA private for the first time in its 35-year history.

Their complaint isn’t focused on the Saudi backers’ human rights record; instead, workers say they were entirely excluded from negotiations and fear any cost-cutting layoffs would be a choice to enrich investors rather than a necessity. Union members have launched a petition urging regulators to scrutinize the deal and protect employees’ jobs and creative autonomy.

• Deal value: $55 billion — would make EA private.
• Backers: Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Jared Kushner’s Affinity Partners.
• Union concerns: lack of worker representation in talks, potential job cuts, reduced transparency and accountability after privatization.
• Political response: Senators including Elizabeth Warren and Richard Blumenthal have voiced reservations; reports note Jared Kushner is involved with the purchase.

Eurogamer and Engadget reported on the union statement and petition; the FTC declined to comment on the acquisition while it is pending. Some analysts have suggested regulators may be reluctant to block the deal, though union organizers argue that worker protections should be central to any review.

Privatizations backed by private equity or billionaire investors have often preceded layoffs and reduced worker visibility in other studios, the statement notes — a trend union members want to prevent at EA.

For more background, see the original report on Engadget and coverage from the Financial Times.

Discussion: Do you think regulators should demand worker protections or conditions before approving a major take-private deal like this?