Just over a month after the sale of Electronic Arts (EA) to the Saudi Arabia Public Investment Fund (PIF) closed in a $55 billion purchase, changes could be coming for the California-based publisher.
In a new report from Bloomberg, the PIF is considering a move that would see the merger of EA and its investment, development, and publishing holding company, Savvy Games Group.
EA and Savvy Games Could Become One
According to the report, executives within the PIF are “weighing plans to create one of the world’s biggest gaming firms to ensure better coordination between its assets.”
It’s said that no final decisions have been made, but no deal will happen before Savvy closes a $6 billion purchase of Chinese mobile game company Moonton.
As far as what this merger could mean, it’s said that it would give Saudi Arabia’s continued push into gaming a “single vehicle through which to make acquisitions, develop games and exploit intellectual property” throughout the industry. It’s unknown at this time if EA would remain a separate company still as part of the merger, or if everything would be absorbed into Savvy Games Group or vice-versa.
Should a deal like this be attempted, however, there will be regulatory approvals that need to be obtained.
Both EA and the PIF declined to comment on the story.
As of August 5, EA is under the control of a group that includes the Saudi Arabia PIF, Affinity Partners, and Silver Lake. The PIF, however, has a controlling interest in the company after taking it private for the first time in three decades. The $55 billion acquisition was the largest leveraged buyout in history, and brought along with it $20 billion in added debt. Those who’ve spoken to Insider Gaming over the last year have expressed concern that large-scale layoffs and possible studio closures will be on the table as the company looks to clear that debt.
What do you think of a potential merger between EA and Savvy Games Group? Let us know down in the comments and in the official Insider Gaming Discord.
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Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…
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