A Canadian labor union is calling for federal examination of the acquisition of a major video game company by Saudi Arabia’s sovereign wealth fund and a private equity firm linked to U.S. President Donald Trump’s son-in-law. The Communications Workers of America Canada has raised concerns about national security and job stability if the consortium, which includes the Public Investment Fund, Affinity Partners led by Jared Kushner, and Silver Lake, proceeds with the purchase of Electronic Arts Inc.
With a presence in Canada dating back to 1991, when it acquired Burnaby-based Distinctive Software, Electronic Arts (EA) now operates five offices in the country, playing a significant role in popular soccer and hockey games as well as contributing to Canada’s $5.1 billion video game industry. The union believes that the sale of EA could jeopardize the industry, especially following recent layoffs at Ubisoft and the acquisition of Activision Blizzard by Microsoft, causing uncertainty among industry stakeholders.
CWA Canada is apprehensive that the takeover of EA could stifle competition in the sector, potentially leading to job losses and reshaping the industry landscape. The union has urged the government to review the transaction under the Investment Canada Act and Competition Act to safeguard national interests and prevent possible negative impacts on the Canadian gaming industry.
Despite concerns raised by CWA Canada, EA did not respond to requests for comments on the situation. The Saudi sovereign fund, Affinity Partners, and Silver Lake also did not provide feedback on the acquisition deal. The $55 billion transaction, announced in September, has received approval from EA’s board but is pending shareholder and regulatory consent, with closure expected in the first quarter of EA’s fiscal 2027.
In light of the potential implications of the deal, CWA Canada has taken proactive steps, reaching out to Industry Minister Mélanie Joly and the Competition Bureau to express reservations regarding the transaction’s impact on Canada’s economic security. The union has highlighted concerns about the integration of EA with a foreign state and the possible misuse of Canadians’ personal information, emphasizing the need for thorough scrutiny and safeguards.
While the Competition Bureau has completed its review of the case, details of the outcome remain undisclosed due to confidentiality provisions. CWA Canada has cautioned that the acquisition of EA could lead to a shift in the company’s operations, favoring expansion in Saudi Arabia over Canada, potentially resulting in layoffs and cost-cutting measures to manage the substantial debt incurred for the acquisition. The union emphasized the importance of preserving Canadian jobs and industry integrity amid the evolving landscape of the gaming sector.
