A consortium that includes the Public Investment Fund of Saudi Arabia and Affinity Partners, Jared Kushner’s investment firm, has agreed to acquire Electronic Arts (EA) for $55 billion. This deal has raised significant concerns among U.S. lawmakers, who warn about the risks of foreign influence and national security issues. In a letter addressed to U.S. Treasury Secretary Scott Bessent, Senators Richard Blumenthal and Elizabeth Warren expressed their concern about the PIF’s reputation as a strategic arm of the Saudi government, especially considering the allegations of ‘sportswashing’ surrounding the country.
A acquisition that they believe would be detrimental to the country
The purchase represents a premium of more than $10 billion over EA’s actual value, suggesting an intention to increase influence rather than simply making a financial transaction. This fact has led senators to question the motivation behind the Saudi interest in a company that has maintained a stagnant stock value over the past few years.
Jared Kushner’s involvement in the transaction adds a layer of complexity, raising doubts about whether his involvement seeks to facilitate government approval, given his ties to his father-in-law, former President Donald Trump. The concern is further exacerbated by the fact that EA has been collecting personal information from its users, which poses potential risks of surveillance and propaganda, under Saudi control.
Blumenthal and Warren have called for a thorough investigation of the agreement to ensure that sensitive data and national security are not compromised. They point out that PIF’s control over EA’s operations could extend to influencing the design and product decisions of the video game giant, allowing the Saudi regime to project power and influence more effectively in the cultural and political sphere within the United States.
