US senators voice concerns over ‘foreign influence and national security risks’ in Saudi-funded EA acquisition
Richard Blumenthal and Elizabeth Warren have asked EA CEO Andrew Wilson to answer questions regarding the deal
Two US Senators have voiced their concerns about the upcoming acquisition of Electronic Arts by a group of private investors including Saudi Arabia’s sovereign wealth Public Investment Fund (PIF).
It was announced last month that EA had “entered into a definitive agreement to be acquired by an investor consortium comprised of PIF, Silver Lake, and Affinity Partners”.
The all-cash transaction values EA at around $55 billion, and will see the consortium acquiring 100% of the company.
In a response to the news, United States Senators Richard Blumenthal and Elizabeth Warren have now questioned the deal, warning of potential security risks and foreign influence over the Saudi-funded acquisition.
In a letter to Secretary of the Treasury Scott Bessent, who also serves as chair of the Committee on Foreign Investment in the United States, the two Senators urged the Committee to “apply searching scrutiny to this unprecedented, proposed foreign privatization of a major American technology and entertainment company” and requested information on how the Committee plans to ensure that national security risks arising from the deal may be mitigated.
The pair also stated that the PIF’s strategic investments in sport, video games and other cultural institutions are more about “leveraging long term shifts in public opinion” of the country than they are about actually making money.
“Saudi Arabia’s desire to buy influence through the acquisition of EA is apparent on the face of the transaction,” they wrote. “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.”
They also questioned the PIF’s decision to partner with Affinity Partners, an American investment firm which was formed in 2021 by Donald Trump’s son-in-law Jared Kushner, and mainly focuses on investing in US and Israeli companies, with most of its funding coming from the Saudi Arabian government.
The letter claims that Saudi Arabia has only involved Kushner’s firm on the deal so the proposed acquisition can be more easily approved by the US government.
“The PIF’s decision to partner with Trump family member Jared Kushner, whose firm previously received a $2 billion investment from the PIF over the objections of the PIF’s own investment screening board, raises troubling questions about whether Mr Kushner is involved in the transaction solely to ensure the federal government’s approval of the transaction,” they claimed.
“Given the proposed transaction’s termination fee contingencies, the three investors appear to be betting $1 billion that Mr. Kushner can deliver the Trump Administration’s regulatory approvals. Indeed, consistent with the Trump Administration’s unprecedented corruption and monetization of federal government power, ‘what regulator is going to say no to the president’s son-in-law?'”
It also argues that by taking EA private, the PIF “threatens to eliminate transparency into the company’s activities” and that as result it “would be well positioned to dictate or veto what stories are told to Americans through the popular medium of video games, controlling narratives about US history and culture.
“In short, the Saudi government’s ability to exert its influence through EA would offer the authoritarian regime an effective tool to project power worldwide,” they warned.
“In short, the Saudi government’s ability to exert its influence through EA would offer the authoritarian regime an effective tool to project power worldwide.”
Senators Blumenthal and Warren have also sent a separate letter to EA CEO Andrew Wilson, telling him they have “profound concern that EA, an important American technology and entertainment company that has produced popular video games, will cease exercising editorial and operational independence under the control of Saudi Arabia’s private majority ownership”.
They asked Wilson to provide “information on how EA plans to continue to operate free of influence from an authoritarian government that has a history of using technology to retaliate against critics, engage in covert influence campaigns, and censor free expression”.
The letter also suggests to Wilson that while the acquisition would “deliver a windfall to you personally – ‘life-altering money’ above and beyond the $280 million in compensation provided to you over the course of your 12-year tenure as CEO”, the financial benefit for the investors is “less certain”.
Warning that the deal could give the Saudi government “access to and unchecked influence over the sensitive personal information collected from EA’s customers, its development of artificial intelligence technologies, and the company’s product design and direction,” the Senators have asked Wilson to explain five things:
- “How will EA ensure that the personal information of American customers of EA will not be misused by the PIF or the government of Saudi Arabia?”
- “How will EA’s management respond to a demand from the PIF or the Saudi government for customer’s personal information?”
- “How will EA ensure that the company’s AI research and work product will not be exploited to further the objectives of the Saudi government?”
- “Explain why EA’s customers should have confidence that they will not be targets of Saudi covert propaganda or other influence when they interact with EA’s video games, and how EA will ensure that the PIF or the government of Saudi Arabia is not able to influence or dictate the content or narratives of EA’s games.”
- “Explain in detail whether any employee or agent of EA will have to register under the Foreign Agents Registration Act after the acquisition is completed.”
Announcing the acquisition last month, EA said the transaction, which has been approved by its board of directors and is expected to close in Q1 of its fiscal year 2027 (meaning by the end of June 2026), “positions EA to accelerate innovation and growth to build the future of entertainment”. The deal will see EA continuing to be led by its current CEO Andrew Wilson, and will remain headquartered in Redwood City, California.
In a statement at the time, Wilson said: “Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world’s most iconic IP, and created significant value for our business. This moment is a powerful recognition of their remarkable work.
“Looking ahead, we will continue to push the boundaries of entertainment, sports, and technology, unlocking new opportunities. Together with our partners, we will create transformative experiences to inspire generations to come. I am more energized than ever about the future we are building.”
