EA New Owners Reportedly Considering Merger With Savvy Games Group

Electronic Arts has officially been sold, with Saudi Arabia's Public Investment Fund now operating as the majority shareholder of the video game company. Sources speaking to Bloomberg report that discussions are underway to merge EA with Savvy Games Group, a gaming and esports holding company also owned by the PIF. The goal is reportedly to foster better coordination between various gaming assets. This potential merger could take place once the PIF completes its plan to acquire Chinese mobile gaming company Moonton in a deal valued at $6 billion.

The PIF maintains a massive portfolio that includes Pokemon Go developer Scopely and publisher SNK, alongside sizable stakes in Nintendo, Capcom, and Koei Tecmo. Such a combination could face intense scrutiny from regulators worldwide, as it places massive franchises like EA Sports FC, Battlefield, and Monopoly Go under a single umbrella. Meanwhile, EA was acquired in a $55 billion leveraged buyout that has saddled the company with billions in debt.

Employees are currently expressing fears regarding potential cost-cutting measures, projected layoffs, studio closures, and game cancellations as EA targets $700 million in cost savings. Developers at BioWare and the team behind The Sims have also raised concerns over how the new ownership might view studios that develop pro-diversity games featuring inclusive storytelling and characters.