Saudi Arabia's Public Investment Fund (PIF) is reportedly exploring the possibility of merging Electronic Arts (EA) with Savvy Games Group, another gaming company in which the PIF holds a significant stake. The PIF recently completed its majority acquisition of EA in August, and this potential merger could consolidate its extensive gaming assets.
According to a Bloomberg report, no definitive decisions have been made regarding the merger. The process would likely commence after the PIF finalizes its acquisition of Chinese mobile gaming firm Moonton, a deal valued at $6 billion announced in March. Any proposed combination would also need to navigate various regulatory approvals.
For the PIF, led by Saudi Arabia's de facto ruler Mohammed bin Salman, merging EA with Savvy Games Group could simplify its overall gaming strategy. Savvy Games Group already encompasses major entities such as esports organization ESL Faceit Group, mobile game developer Scopely, and soon Moonton. Integrating EA's substantial operations into this structure could create a more cohesive portfolio.
Financial considerations may also be driving this exploration. Mergers often lead to operational efficiencies and cost reductions through the elimination of duplicated services. Employees at EA are reportedly anticipating significant job cuts as the company absorbs the $18 billion debt incurred from the PIF's acquisition. The PIF may be seeking additional avenues to reduce expenses.
The regulatory landscape for such a large-scale merger remains uncertain. The combined entity would represent a global gaming powerhouse effectively controlled by a single entity. Past PIF acquisitions, such as EA, have involved figures connected to former US President Donald Trump, including his son-in-law Jared Kushner, potentially influencing regulatory outcomes. These connections may have previously helped the PIF avoid the intense scrutiny faced by Microsoft's acquisition of Activision Blizzard.
Electronic Arts has declined to comment on the report. The Public Investment Fund and Savvy Games Group have also been approached for comment.