A Canadian labor union is calling for government scrutiny of a proposed acquisition of Electronic Arts Inc., one of the world’s largest video game companies, by a consortium that includes 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 expressed concerns about potential national security risks and job impacts if the deal goes through.
The union emphasized that Electronic Arts, which has been operating in Canada since 1991 and has multiple offices in the country, plays a significant role in Canada’s $5.1-billion video game industry. With recent developments like rival Ubisoft’s layoffs and Microsoft’s acquisition of Activision Blizzard, the union fears the potential consequences of Electronic Arts’ sale.
Carmel Smyth, president of CWA Canada, highlighted the broader implications for the industry, stating that the entry of a major player like the consortium could stifle competition, leading to job losses and industry restructuring. The union represents hundreds of video game industry workers in Canada and has raised concerns about the impact on the sector as a whole.
Despite the concerns raised by the union, Electronic Arts did not respond to requests for comment on the matter. The proposed $55-billion acquisition, announced in September, has garnered approvals from EA’s board but still requires shareholder and regulatory consent, expected to be finalized by the first quarter of EA’s fiscal 2027.
CWA Canada took proactive steps by reaching out to Industry Minister Mélanie Joly and the Competition Bureau to request a review of the transaction under the Investment Canada Act and Competition Act. The union highlighted potential risks of integrating Electronic Arts with a foreign state and the implications for Canadians’ personal data security. The Competition Bureau’s review of the merger concluded with an outcome labeled as “other,” indicating a unique situation not falling under typical outcomes.
The union’s letter to the bureau warned of potential shifts in EA’s operations between Saudi Arabia and Canada and expressed concerns about layoffs and cost-cutting measures due to the substantial debt financing of the acquisition. Smyth stressed the importance of preserving Canadian jobs and the industry’s creative integrity amid financial pressures associated with the deal.