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Canadian political party leader blames BioWare’s closure on private equity, says government should help former employees buy it back
Canadian New Democratic Party leader Avi Lewis has blamed private equity for BioWare’s closure and called for its developers to receive the first chance to buy the studio, with federal support. His comments bring the studio’s shutdown into a wider debate about ownership, jobs and the future of the games industry.
EA was acquired in a leveraged buyout involving Saudi Arabia’s Savvy Games Group and Jared Kushner’s private equity firm. After the acquisition, BioWare closed and about 400 people lost their jobs across several EA studios, including Respawn, Maxis and Full Circle. Lewis argued that BioWare’s developers know how to run the studio and make its games; other industry figures also expressed sadness and support.
In short
- Avi Lewis called for BioWare staff to be backed in a studio buyout.
- He linked the closure to concerns about private equity ownership.
- Around 400 jobs were cut across EA studios.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
BioWare’s developers hold the creative and technical knowledge that made the studio’s games, so giving them the first chance to buy it could preserve expertise, jobs and a valued Canadian cultural institution. Federal support could help address the financing gap that often prevents employees from acquiring a company, while giving workers more influence over decisions affecting the studio’s future.
The case against
A government-backed buyout could put public money at risk in a volatile industry, especially if the studio lacks a viable business plan or sufficient financing to compete. Decisions about closing or selling a studio may also reflect wider commercial pressures, and directing support to one group of employees could be seen as an unfair use of public funds compared with helping other displaced workers or businesses.
Explained simply
BioWare is a Canadian video game studio known for role-playing games such as Mass Effect and Dragon Age. It became part of Electronic Arts (EA), a large publisher that owns several game studios.
Private equity firms invest in companies, often seeking to change how they are run or eventually sell them; a leveraged buyout uses borrowed money to help pay for an acquisition. EA was acquired in a deal involving Saudi Arabia’s Savvy Games Group and Jared Kushner’s investment firm. The debate over the deal and BioWare’s closure touches on who controls game studios and how ownership decisions affect workers.
A developer buyout would mean the studio’s employees taking ownership themselves. It raises questions about whether workers could secure the money and support needed to keep a studio operating, and what role government might play.