Gamers are protesting a private equity’s purchase of Electronic Arts

As Electronic Arts moves closer to selling the gaming company to Saudi investors, it faces backlash from a group of protesters who call it a bad deal.

A coalition calling itself the Players Alliance organized a protest outside the Electronic Arts headquarters in Redwood City this week. Dressed as Sims characters, protesters held signs reading “Stop the deal” and unfurled a 50-foot-long petition containing more than 70,000 signatures from gamers, developers and creators opposed to the $55 billion acquisition of the gaming company behind major franchises such as “The Sims” and “Madden NFL.”

The demonstration follows Electronic Arts’ announcement last year that it was being acquired by Saudi Arabia’s Public Investment Fund and investment firms Silver Lake and Affinity Partners.

If it crosses the finish line, the all-cash acquisition would constitute the largest buyout of a publicly traded company to date.

At closing, Saudi Arabia would control the majority of the company and EA agreed to take on $20 billion in debt. Shareholders have already approved the acquisition. It now awaits approval from federal regulators.

Members of the Players Alliance believe the deal will likely result in layoffs and other significant reductions at the company, including replacing employees with AI technologies. The group also suspects that consumers will end up paying the price for EA’s additional debt, as the gaming giant may continue to double down on in-game purchases – a problem for some gamers – to help shore up the company’s finances.

EA declined to comment on the matter.

“We believe this will not only affect EA games, but it will set a precedent in the gaming industry,” said East, who participated in this week’s protest alongside 15 other gamers. “Other gaming companies are going to follow a similar model, and gaming as a whole becomes less about community and creativity. It’s all about monetization.”

The Players Alliance was founded a little over a year ago, with a mission to educate consumers about the inner workings of deals like the EA acquisition and to preserve the gaming community.

East added: “It’s getting to a point where gaming starts to feel like it’s less about community and art and expression… It’s not fair to the players, the consumers, and it’s certainly not fair to the developers who put their hearts into building certain things.”

There are also concerns about how Saudi Arabia’s involvement in the company could affect the content of EA’s games. Titles like “The Sims,” in which characters can have same-sex relationships, are often considered a safe space for members of the LGBTQ+ community. But since homosexuality is illegal in Saudi Arabia, East fears things could change.

Saudi Arabia’s interest in EA builds on its latest efforts to diversify its investments. Many of the country’s Public Investment Fund interests are rooted in Hollywood, including the addition of $24 billion to support Paramount Skydance’s acquisition of Warner Bros. and sports, such as the upcoming FIFA World Cup.

Last month, the company withdrew funding from the LIV golf tournament after losing billions, according to the Wall Street Journal. Electronic Arts also has a similar sports appeal, as it is known as one of the largest sports gaming companies in the industry, along with EA Sports FC for soccer and Madden NFL.

Electronic Arts was founded in 1982 in Northern California. The company has a presence in the Los Angeles area with offices in Marina del Rey and Chatsworth. In recent years, EA has suffered several rounds of layoffs as the gaming industry consolidated. The industry boomed during the COVID-19 pandemic as people looked for ways to entertain themselves at home. But since then, many companies have suffered budget cuts to adapt to rising production costs and a concentration of demand on a smaller number of hit live games.

If the EA acquisition receives final approval, the transaction is expected to close later this year. EA’s headquarters would remain in Redwood City and CEO Andrew Wilson would retain his position.

Times Staff Writer Wendy Lee contributed to this report.