US senators warn of national security risks in Saudi-led $55B takeover of EA
US senators warn of national security risks in Saudi Arabia’s $55 billion takeover of Electronic Arts. The involvement of Trump’s son-in-law Jared Kushner further adds to the political concerns.
Senators sound alarm on EA deal
The planned takeover of Electronic Arts by a consortium led by the Saudi sovereign wealth fund Public Investment Fund for 55 billion dollars (around 47.3 billion euros) is causing considerable unrest in Washington. Democratic Senators Richard Blumenthal of Connecticut and Elizabeth Warren of Massachusetts have made public their concerns about possible security risks and foreign influence.
In addition to the Public Investment Fund, the consortium also consists of the private equity firm Silver Lake and Affinity Partners – the investment company of Jared Kushner, the son-in-law of US President Donald Trump. The transaction would delist EA and take it 100 percent private. The company behind game series such as FIFA, Madden NFL, The Sims and Battlefield employs over 13,000 people worldwide and generated sales of $7.6 billion in the 2024 fiscal year.
Criticism of Saudi investments
In their letter to Treasury Secretary Scott Bessent (PDF), the senators warn about the strategic goals behind Saudi Arabia’s billions in investments in sports, gaming and cultural institutions. With its Vision 2030, the kingdom aims to diversify the economy while improving its international image – a process that is often criticized as “sportswashing”. Politicians argue that these deals are less about making profits and more about creating long-term changes in public opinion.
They are particularly critical of the excessive purchase price: the consortium is paying more than ten billion dollars above the current market value for a company whose shares have stagnated for half a decade. This clearly shows Saudi Arabia’s intention to buy influence instead of achieving economic returns.
Senators raise particular concerns about Kushner’s role in the deal. Affinity Partners received $2 billion from the Public Investment Fund in 2021, just six months after Kushner left the Trump administration – against the express advice of the fund’s own investment committee. The senators suspect that Kushner only became involved to facilitate US government approval. Kushner, who served as an adviser during Trump’s first term and was instrumental in normalizing relations between Saudi Arabia and Israel, brings significant political influence with him.
In their letter, the senators cite the rhetorical question: “What kind of regulator is going to say no to the president’s son-in-law?” With the one billion dollar default fee, the consortium is betting that Kushner can secure regulatory approvals from the Trump administration, according to the Democratic politicians. Privatizing Electronic Arts would eliminate transparency about the company’s activities and allow the Public Investment Fund to influence the stories that video games convey to Americans.
The company has a vast trove of data from millions of users worldwide – from FIFA Ultimate Team to The Sims players – who reveal personal information and gaming habits. The senators fear that the Saudi government could use this information for surveillance, covert propaganda or targeted retaliation against critics. In addition, access to Electronic Arts’ research in the field of artificial intelligence, which is used for realistic gaming experiences and behavior analysis, could become problematic.
Regulators should take a closer look
Blumenthal and Warren are calling on the Committee on Foreign Investment in the United States to conduct a thorough investigation into the takeover. The body reviews foreign investments for potential risks to national security and can block transactions or impose conditions. At the same time, they also contacted Electronic Arts boss Andrew Wilson directly and asked five specific questions about data protection, AI research and possible influence on game content.
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