US officials flag EA buyout over foreign influence and national security

The US government has raised concerns with the $55 billion buyout of Electronic Arts (EA) by a consortium that is made up of Saudi Arabia's Public Investment Fund (PIF) and Jared Kushner's Affinity Partners investment firm.

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In a letter penned by senators Richard Blumenthal and Elizabeth Warren to US Treasury Secretary Scott Bessent, the senators express concern about the buyout's potential to result in foreign influence campaigns and general national security risks. The senators point to PIF and its "reputation" as a strategic arm of the Saudi government, and how Saudi Arabia is making its way into different facets of cultural institutions, such as sports and video games.

Additionally, the letter states that Saudi Arabia's attempt at buying influence can be seen through the acquisition of EA, as the company was purchased at more than $10 billion above EA's trading value, which is strange considering EA's stock has largely remained stagnant for half a decade. The senators also point to the involvement of Jared Kushner, the son-in-law of US President Donald Trump.

• Read more: CWA Labor Union, EA workers issue formal opposition to $55 billion Saudi buyout

"The proposed transaction poses a number of significant foreign influence and national security risks, beginning with the PIF's reputation as a strategic arm of the Saudi government," the letter states

The senators say Kushner's involvement in the deal "raises troubling questions about whether Mr. Kushner is involved in the transaction solely to ensure the federal government's approval of the transaction," adding, these actions are "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?'"

Despite any political bias, the senators are calling for extra scrutiny on the deal as it has "potential to expand and strengthen Saudi foreign influence in the United States."

"The unrestricted access to this information by a repressive, authoritarian government poses significant potential risks of surveillance of Americans, covert Saudi propaganda, and selective retaliation and censorship of persons disfavored by the Saudi government," adds the letter

"The PIF's control over EA's operations could extend to influencing or directing the company's design, features, and product decisions to advance the Saudi government's specific and long-term objectives. PIF 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. As one analyst observed, 'Saudi Arabia clearly recognizes the political and cultural influence of video games, especially among young people'," adds the letter