Saudi Wealth Fund Considering Merger Between EA and Savvy Games Group

The Saudi Arabia Public Investment Fund is reportedly weighing a merger between Electronic Arts and Savvy Games Group. Just over a month after the $55 billion sale of Electronic Arts closed, executives within the Public Investment Fund are evaluating plans to combine the two entities. According to reports, the goal is to create one of the largest gaming firms in the world and ensure better coordination between state-backed assets.

Sources indicate that no final decisions have been made regarding the potential deal. Furthermore, no transaction will move forward until Savvy Games Group finalizes its $6 billion acquisition of Chinese mobile game company Moonton. If a merger is eventually pursued, it would provide Saudi Arabia with a single vehicle to manage acquisitions, develop games, and exploit intellectual property across the industry. It remains unclear whether Electronic Arts would operate as a separate subsidiary or if operations would be fully absorbed.

Any formal attempt to merge the companies will require regulatory approvals. Representatives for Electronic Arts and the Public Investment Fund declined to comment on the report. The initial $55 billion buyout took Electronic Arts private for the first time in three decades and introduced $20 billion in added debt. Industry observers have expressed concerns that this debt load could lead to large-scale layoffs and studio closures as the publisher restructures its operations.