"The Securities & Exchange Commission requires companies to disclose risks to its business activity in quarterly 10-Q filings. EA disclosed these as per usual, but a new risk this time around is specific to its pending sale to the PIF, Silver Lake, and Affinity Partners. Specific to the merger, EA said "uncertainty about the effect of the merger may impair our ability to attract, retain, and motivate key personnel, and could cause customers, suppliers, financial counterparties, and others to seek to change existing business relationships with us.""
"When the PIF emerged as the leading investor in the consortium to buy EA, one of the first reactions pertained to Saudi Arabia's history of human rights violations. Some of the teams inside EA, including BioWare and Maxis, are known for making pro-diversity games featuring inclusive storytelling and characters. Longtime BioWare writer Patrick Weekes, who was laid off earlier this year, speculated that EA's new owners, including the PIF, might want to avoid 'gay stuff' and politics that the PIF's leadership does not agree with."
SEC rules require public companies to report business risks in quarterly 10-Q filings. EA faces a new, merger-specific risk tied to its pending $55 billion sale to a consortium led by Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners. The company warned that uncertainty about the merger could impair its ability to attract, retain, and motivate key personnel and could prompt customers, suppliers, and financial counterparties to alter business relationships. Some employees and former staff raised concerns about the PIF's human rights record and potential impacts on inclusive storytelling, studio futures, and possible layoffs. EA is on the hook for $20 billion.
Read at GameSpot
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