Saudi Arabia's Public Investment Fund (PIF) is reportedly exploring a significant consolidation of its gaming assets, with plans to merge Electronic Arts (EA) and Savvy Games Group under a unified banner. The speculative merger aims to enhance coordination between the PIF's diverse gaming ventures, according to sources familiar with the matter who spoke to Bloomberg.
This potential integration follows EA's acquisition by the PIF in a leveraged buyout valued at $55 billion earlier this year. EA, known for titles like EA FC, Apex Legends, and Battlefield, would join Savvy Games Group, a PIF subsidiary that already holds a controlling interest in Scopely, the developer behind the popular mobile game Pokémon Go. Savvy Games Group also possesses stakes in esports organizations such as ESL and has acquired partial ownership in prominent game companies including Capcom, Nintendo, and Koei Tecmo.
Savvy Games Group has been a central pillar in Saudi Arabia's expanding presence within the global video game industry. However, it was not the entity utilized for the recent acquisition of EA.
Further complicating the landscape, Savvy Games Group has been in discussions to acquire Chinese mobile gaming company Moonton for $6 billion. Bloomberg reports indicate that this acquisition is contingent on the completion of the proposed merger between EA and Savvy Games Group. Neither EA nor the PIF have officially commented on these developments.
The news comes shortly after Brian Ward, CEO of Savvy Games Group, stepped down from his position. Ward had been instrumental in overseeing many of Savvy's substantial investments and acquisitions in recent years, making his departure a point of interest in light of the reported merger talks.
Speculation about EA's future has been ongoing since its acquisition, with some industry observers suggesting that the significant debt incurred from the leveraged buyout could lead the company to de-emphasize its single-player game portfolio and potentially reduce its workforce.