Sale of EA Raises U.S. National Security Concerns

Two U.S. senators, Richard Blumenthal and Elizabeth Warren, have raised concerns about a potential acquisition of Electronic Arts by a group of investors that includes Saudi Arabia’s sovereign wealth fund.

In letters addressed to the U.S. Treasury Secretary and EA CEO Andrew Wilson, they warn the $55 billion deal could pose national security risks.

Under the proposal, EA would be taken private. The investor consortium reportedly includes the Saudi sovereign fund, American firm Silver Lake, and an investment vehicle linked to Jared Kushner. The transaction also contemplates a $20 billion loan facility.

In their correspondence, the senators ask how EA would maintain its independence in the face of “an authoritarian government with a history of using technology to pressure critics and censor free speech.” They flag risks such as potential surveillance of U.S. residents, the spread of Saudi propaganda, and foreign access to user data and AI technologies.

Lawmakers urged the Committee on Foreign Investment in the United States (CFIUS) to review the transaction and publish its conclusions. The agreement includes a $1 billion break fee if U.S. regulators do not approve the purchase.

Source: iXBT.games