A Canadian union wants federal scrutiny of a takeover of one of the world’s largest online game makers by Saudi Arabia’s sovereign wealth fund and a non-public fairness agency owned by U.S. President Donald Trump’s son-in-law.
The Communications Staff of America Canada says the federal authorities ought to examine the deal as a result of national security and jobs can be in danger if the consortium of consumers — together with the Public Funding Fund, Jared Kushner’s Affinity Companions and fellow non-public fairness agency Silver Lake — are allowed to purchase Electronic Arts Inc.
The American firm has had a footprint in Canada since at the very least 1991, when it swallowed Distinctive Software program, a Burnaby, B.C.-based online game developer.
EA now boasts 5 places of work within the nation which have contributed considerably to the corporate’s hit soccer and hockey video games, and Canada’s broader $5.1-billion online game trade.
CWA Canada says EA’s sale threatens that every one and could not come at a worse time. EA rival Ubisoft just lately laid off staff in Canada and competitor Activision Blizzard was wolfed up by Microsoft, placing everybody left within the sector on edge.
“Our concern is for the trade, as a result of what occurs right here goes to have an effect on everyone in that trade,” mentioned CWA Canada president Carmel Smyth.
She represents a whole bunch of online game trade employees in Canada, although none are employed by EA, and mentioned the CWA’s U.S. arm helps hundreds.
Electronic Arts, maker of video video games like The Sims and Madden NFL, is being acquired for $55 billion US, the largest leveraged buyout try in historical past. Many particulars of the deal stay unknown, however as Michelle Ghoussoub studies, it is resulting in extra uncertainty in Canada’s gaming trade given EA’s main presence throughout the nation.
If the EA deal strikes ahead, she worries competitors throughout the broader trade can be stifled, doubtlessly inflicting job losses.
“There is no method that … individuals who work within the trade will not be affected over the long run when an organization this measurement will are available, crush the competitors and redesign the trade,” Smyth mentioned.
“That is what folks worry goes to occur.”
EA, which is one of essentially the most outstanding online game builders on this planet with about $7.5 billion US in income final yr and a portfolio together with EA Sports activities FC, Madden NFL, and The Sims, didn’t reply to a request for remark about CWA Canada’s issues.
An FAQ the corporate circulated to employees final yr answered a query about whether or not its sale would result in layoffs by saying, “there can be no rapid adjustments to your job, workforce, or every day work, because of this of this transaction.”
The Saudi sovereign fund, which already has a minority funding in EA and its rival Nintendo, didn’t reply to a request for remark. Neither did Affinity nor Silver Lake.
When the consortium introduced the $55-billion US deal final September, it mentioned the transaction already had approval from EA’s board of administrators however nonetheless wanted assent from shareholders and regulators. It is not anticipated to shut till the primary quarter of EA’s fiscal 2027, which wraps on the finish of June.
Involved about what the transaction will imply for North America, CWA Canada determined to make use of the window earlier than the deal is predicted to shut to take motion.
CWA Canada can be the guardian union of the Canadian Media Guild, which represents some employees at The Canadian Press and lots of employees at CBC News.
The union wrote to Business Minister Mélanie Joly on Tuesday and the Competitors Bureau in December, asking for the transaction to be reviewed underneath the Funding Canada Act and Competitors Act.
The Funding Act regulates overseas investments in Canada and permits the federal government to overview transactions to make sure they don’t hurt national security.
The Competitors Act offers the Competitors Bureau the facility to research mergers and different enterprise conduct to make sure firms don’t impede innovation or the buyer advantages competitors brings.
The word to Joly raises issues that the deal may undermine Canada’s financial security by intently integrating EA with a overseas state that might be handed delicate private info on tens of millions of Canadians that it may exploit.
“Monetary info, well being info, every kind of knowledge is collected and will be shared and used with out recreation customers’ data or permission or consent,” Smyth mentioned.
“We’re equally involved as a result of it is Saudi Arabia,” she mentioned, noting the nation doesn’t essentially have “the sort of regulation, accountability and transparency that we’d count on in Canada.”
Bureau’s overview of case completed
Cheyenne Daly, a spokesperson for Joly, mentioned the federal government can’t touch upon the matter “as a result of confidentiality provisions of the Funding Canada Act.”
The Competitors Bureau’s web site reveals it began reviewing the merger in November 2025 and wrapped the method on the finish of March.
After a overview, the bureau normally reaches one of a number of outcomes: it determines no motion is important or it reaches an settlement the place the merger events conform to divest property or change their plans to keep up competitors.
Within the case of EA, the end result is listed as “different.”
Georgia Simone Fakiolas, a Competitors Bureau spokesperson, mentioned “different” means none of the standard outcomes apply on this state of affairs.
“Because the bureau is required by regulation to conduct its work confidentially, I’m unable to offer additional particulars relating to this overview,” Simone Fakiolas mentioned in an electronic mail.
The union’s letter to the bureau warned the acquisition of EA may end result within the firm increasing in Saudi Arabia and contracting in Canada.
Smyth informed the bureau she is especially apprehensive about Canadian jobs as a result of the sale is being financed with $20 billion US in debt and analysts have instructed layoffs “are one of the important thing methods the corporate will search to chop prices with a purpose to service its huge debt.”
“The strain to make that cash again … means they are going to should intestine studios. They’ll have to purchase up the competitors, merge, lay off, make the most cost effective attainable product,” she mentioned in an interview.
“So the times of inventive folks dreaming up the most effective recreation they may think about and taking years to make it occur, that is all gone.”
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