Electronic Arts employees protested against management after Saudi Arabia’s PIF completed a $55 billion privatization of the company. Developers fear heavy scrutiny and mass layoffs. The transition of a prominent American publisher to foreign control is triggering a deep crisis of confidence across the industry.
Many U.S. studio experts expressed disappointment. Management is committed to protecting the corporate culture, but the author believes these statements are little more than rhetoric. Complicating the situation is the $20 billion in debt taken on to finance the acquisition. The developers of The Sims and Battlefield are worried that their progressive-minded games will be canceled.
A deal between PIF and Jared Kushner Companies takes Electronic Arts private. Previously, Saudi Arabian investors acquired stakes in Scopely, Capcom and Take-Two Interactive.