Gamers, developers protest Saudi Arabia Public Investment Fund's bid to acquire Electronic Arts
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As Electronic Arts moves closer to closing a sale of the gaming company to Saudi Arabian investors, it’s facing backlash from a group of protestors who are calling it a bad deal.A coalition calling itself the Players Alliance staged a protest outside Electronic Arts’ Redwood City headquarters this week.Dressed as Sims characters, the protesters held signs that read “Stop the deal” and unfurled a 50-foot-long petition containing more than 70,000 signatures from gamers, developers and creators who are opposed to the $55 billion acquisition of the gaming company behind major franchises such as “The Sims” and “Madden NFL.”The demonstration follows Electronic Arts’ announcement last year that it would be acquired by Saudi Arabia’s Public Investment Fund and investment firms Silver Lake and Affinity Partners.
If it gets across the finish line, the all-cash acquisition would be the largest buyout of a publicly traded company to date.Upon closing, Saudi Arabia’s PIF would control a majority of the company, and EA agreed to take on $20 billion in debt.Shareholders have already approved the acquisition.
It is now awaiting approval from federal regulators.Members of the Players Alliance say they believe the deal will likely lead to layoffs and other major cuts to the company, including replacing employees with AI technologies.The group also suspects consumers will ultimately pay the price for EA’s additional debt, as the gaming giant could continue to double down on in-game purchases — a pain point for some gamers — to help bolster company finances.EA declined to comment on the matter.
Business Electronic Arts, the video game maker of ‘Madden NFL,’ ‘The Sims,’ and other popular titles, is being acquired and taken private for $55 billion.“We believe that this will not only affect EA games, but this sets a precedent in the gaming industry,” said East...