US Senators Raise Concerns Over $55 Billion EA Acquisition by Saudi-Backed Consortium
- Sagar Mankar
- Oct 16
- 4 min read
Electronic Arts’ upcoming $55 billion acquisition by a Saudi-backed investor group has drawn sharp criticism from two U.S. Senators, who warn the deal could pose risks far beyond the gaming industry.
What Is the Deal About?
EA revealed last month that it had “entered into a definitive agreement” to be acquired by a consortium of investors led by Saudi Arabia’s Public Investment Fund (PIF), alongside Silver Lake and Affinity Partners, marking one of the largest leveraged buyouts in gaming history. The consortium aims to purchase 100% of EA’s shares, valuing the company well above its market capitalization at the time.
Under the agreement, EA will remain headquartered in Redwood City, California, and continue to be led by CEO Andrew Wilson. In his statement, Wilson described the move as an opportunity to “accelerate innovation and growth” and to “build the future of entertainment,” suggesting the company’s leadership will stay intact post-acquisition.
However, despite the optimistic tone from EA, lawmakers in Washington have expressed unease about the deeper implications of the transaction.
Why Are Lawmakers Concerned?
Senators Richard Blumenthal and Elizabeth Warren have written to Treasury Secretary Scott Bessent, who chairs the Committee on Foreign Investment in the United States (CFIUS).
In a letter, Senators urged the committee to apply "searching scrutiny" to what they called an "unprecedented foreign privatization of a major American entertainment company."
The senators allege that the PIF’s acquisitions in sports, gaming, and media are not purely financial but are instead aimed at reshaping public opinion and projecting soft power worldwide.
“Saudi Arabia’s desire to buy influence through the acquisition of EA is apparent on the face of the transaction,” the letter reads, pointing out that the investors are offering over $10 billion above EA’s trading value for a company whose stock “has stagnated for half a decade.”
Kushner’s Involvement Adds Political Complexity
Adding to the controversy is Affinity Partners, an investment firm founded by Jared Kushner, the son-in-law of former President Donald Trump. According to the senators, the PIF previously invested $2 billion in Kushner’s firm despite objections from its own investment screening board.
Blumenthal and Warren claim this connection “raises troubling questions” about whether Kushner’s involvement is meant to secure favorable regulatory treatment from the U.S. government. They also noted that the acquisition’s $1 billion termination fee suggests that investors are confident in Kushner’s ability to “deliver regulatory approvals.”
“What regulator is going to say no to the president’s son-in-law?” the letter mentions.
National Security and Data Privacy at the Forefront
Beyond the political entanglements, the senators’ main concern lies in data privacy and national security. They warn that EA’s massive global user base, estimated at more than 700 million players, represents a vast amount of sensitive data that could be exploited by an authoritarian government.
Modern video games, they argue, collect behavioral and personal information similar to social media platforms. If the acquisition proceeds without strict safeguards, the Saudi government could gain “unchecked access to personal information, AI research, and in-game narratives that shape cultural perceptions.”
"The unrestricted access to this information by a repressive, authoritarian government poses significant potential risks of surveillance of Americans, covert Saudi propaganda, and selective retaliation and censorship of persons disfavored by the Saudi government."
They further contend that taking EA private would remove the company from Securities and Exchange Commission (SEC) oversight, reducing transparency and giving the PIF greater control over its operations and storytelling choices.
"PIF would be well-positioned to dictate or veto what stories are told to Americans through the popular medium of video games, controlling narratives about U.S. history and culture."
Senators Demand Answers from EA
Both senators asked CFIUS to conduct a "thorough investigation of the foreign influence and national security risks posed by the proposed acquisition of EA by the PIF."
The Committee is responsible for reviewing foreign investments that could "pose a risk to U.S. national security." CFIUS has the power to order mitigation of national security risks or block foreign acquisitions of American companies or technologies, including "on the basis of protecting sensitive consumer data."
In a separate letter to EA CEO Andrew Wilson, Blumenthal and Warren asked in detail how EA plans to protect its creative integrity, safeguard player data, and prevent foreign influence over its content.
Among their specific questions:
How will EA ensure the personal data of U.S. players isn’t misused?
How will management respond if the Saudi government demands access to customer information?
What guarantees exist to prevent the manipulation of in-game content for political purposes?
The senators also noted that while the acquisition might offer Wilson “life-altering money” beyond his $280 million in past compensation, it could come at the cost of EA’s autonomy and reputation.
The deal, pending regulatory approval, is expected to close by June 2026 (Q1 FY2027).