U.S. senators are sounding the alarm over the purchase of Electronic Arts, calling it a potential threat to national security.
The expensive purchase of Electronic Arts has sparked worries among American politicians about "foreign influence" in domestic companies.
The takeover of EA is definitely one of the biggest events in the gaming industry this year and one of the largest deals (or at least the biggest leveraged buyout) in video game history. However, just like with Activision Blizzard a few years ago, not everyone is thrilled about this purchase. Not just because, over the past couple of years, some players have seriously questioned if Microsoft's purchase was a smart move.
Scott Bessent, the U.S. Secretary of the Treasury, got a letter signed by a few politicians (via Games Radar), where Senators Richard Blumenthal and Elizabeth Warren voiced their "sincere concerns about foreign influence and national security risks" regarding the "potential buyout" of EA.
These concerns stem from Saudi Arabia's involvement in the transaction, where the Public Investment Fund is located—one of the entities set to become the new owner of the publisher. This is by no means the first investment by this group in the video game market. The fund also owns shares in companies like Activision Blizzard.
Senators emphasize that the consequences of this acquisition would not be strictly financial, as it also concerns "influence." Politicians point out that EA's shares have been "stagnant" for 5 years, and the gaming industry is so "unpredictable and unstable" that PIF's willingness to pay such an amount can only be explained by a desire to "gain influence" in the American company.
The proposed transaction poses a number of significant foreign influence and national security risks, beginning with the PIF’s reputation as a strategic arm of the Saudi government. […]
Saudi Arabia's desire to buy influence through the acquisition of EA is apparent on the face of the transaction – the investors propose to pay more than $10 billion above EA's trading value for a company whose stock has 'stagnated for half a decade' in an unpredictably volatile industry.
There are also concerns about the involvement of Jared Kushner, who has ties to President Donald Trump (as he is his son-in-law). In the context of other actions by the former, senators question whether Kushner's presence is solely to "ensure federal government approval of the transaction."
Blumenthal and Warren point to the influence of the gaming industry in the modern world. They think that the current games are almost like social media, which means there's a risk of collecting tons of personal and behavioral data from American consumers.
Such "unlimited access" for a "repressive, authoritarian government," combined with the potential use of AI (Saudi Arabia is expected to be one of the leading investors in AI development), is considered by the senators to be an unacceptable risk, without an easy and certain way to limit it. Therefore, the authors of the letter want the Secretary of the Treasury to address the issues they raised (including Bessent's contacts with Kushner) by November 4th.
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Author: Jacob Blazewicz
Graduated with a master's degree in Polish Studies from the University of Warsaw with a thesis dedicated to this very subject. Started his adventure with gamepressure.com in 2015, writing in the Newsroom and later also in the film and technology sections (also contributed to the Encyclopedia). Interested in video games (and not only video games) for years. He began with platform games and, to this day, remains a big fan of them (including Metroidvania). Also shows interest in card games (including paper), fighting games, soulslikes, and basically everything about games as such. Marvels at pixelated characters from games dating back to the time of the Game Boy (if not older).
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