Union Urges Review of $55B EA Takeover

TORONTO - The Communications Workers of America Canada has called on the federal government and the Competition Bureau to scrutinize a proposed US$55 billion takeover of Electronic Arts Inc. by a consortium including Saudi Arabia's Public Investment Fund, Jared Kushner's Affinity Partners and Silver Lake, raising concerns over national security and Canadian jobs.

The union, which represents hundreds of video game workers in Canada though none at EA, sent a letter on May 5 to Industry Minister Mélanie Joly requesting a review under the Investment Canada Act. It also contacted the Competition Bureau in December, urging examination under the Competition Act. CWA Canada President Carmel Smyth highlighted risks from the deal's structure, including US$20 billion in debt that could lead to cost-cutting measures such as layoffs.

EA, a leading video game publisher with last year's revenue of about US$7.5 billion from titles like EA Sports FC, Madden NFL and The Sims, has operated in Canada since 1991. That year, it acquired Distinctive Software, a Burnaby, B.C.-based developer. The company now maintains five offices across the country, including in Quebec, Vancouver, Toronto and...