EA Buyout Draws Concern From Lawmakers

Last week, following mobilizing efforts by CWA activists who have been advocating to protect good jobs in the video game industry, the Congressional Labor Caucus submitted a letter to the Federal Trade Commission urging Commission Chair Andrew Ferguson to review the proposed acquisition of video game company Electronic Arts (EA). Thanks to the work of CWA legislative activists, over 40 lawmakers signed on to the letter, expressing serious concerns over the impacts the sale might have on workers, labor market concentration, and the long-term competitiveness of the U.S. video game industry.

“Workers in the video game industry are already navigating an environment marked by instability, shrinking opportunities, and repeated rounds of layoffs,” wrote the lawmakers. “EA is one of the largest employers of video game workers in the United States, and evidence suggests the company already wields significant wage-setting power.”

The lawmakers conclude their letter saying, “We respectfully urge the Commission to conduct a thorough investigation into the labor market consequences of this proposed acquisition, including EA’s existing wage-setting power, the likelihood of post-transaction layoffs, the degree of labor market concentration in relevant geographic and occupational markets, and the role of cross-ownership in shaping labor outcomes. Workers deserve a fair, competitive marketplace where their skills are valued.”

EA is one of the biggest gaming companies in the world and agreed to a $55 billion buyout to Saudi Arabia's Public Investment Fund (PIF) and private equity firms Silver Lake Technology Management, L.L.C., and Affinity Partners, the latter founded in 2021 by Jared Kushner.

Click here to read the full letter.

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This post originally appeared on cwa-union.org.