Saudi Arabia's Public Investment Fund (PIF) is reportedly exploring a significant consolidation within its gaming portfolio, with discussions underway to merge Electronic Arts (EA) with Savvy Games Group. Savvy Games Group is also a gaming and esports holding company owned by the PIF.
According to sources speaking with Bloomberg, the PIF's objective is to foster enhanced coordination among its diverse gaming investments. This proposed merger could materialize following the PIF's completion of its planned $6 billion acquisition of Chinese mobile gaming company Moonton. The PIF's existing gaming interests are substantial, including ownership of Scopely, the developer behind "Pokemon Go," and game publisher SNK, alongside significant stakes in major publishers such as Nintendo, Capcom, and Koei Tecmo.
The potential combination of EA and Savvy Games Group under the PIF's umbrella, which already controls EA with a 93.4% stake, could draw regulatory scrutiny worldwide. Such a move would bring globally recognized franchises like "EA Sports FC" and "Battlefield," as well as mobile titles such as "Monopoly Go," under a single corporate roof. While EA's acquisition is valued at $55 billion, the leveraged buyout has also reportedly saddled the company with billions in debt requiring attention.
Internally, concerns are rising among EA employees regarding potential repercussions. Projections suggest widespread cost-cutting measures, including layoffs, studio closures, and game cancellations, as EA may be targeting $700 million in cost savings. Developers at studios like BioWare and those working on "The Sims" have expressed apprehension about the future, particularly regarding how the PIF might react to their work on games featuring inclusive storytelling and diverse characters.