Saudi Arabia’s PIF Considers Merger of EA and Savvy Games Group
- Saudi Arabia’s Public Investment Fund is evaluating a merger of Electronic Arts with Savvy Games Group.
- The PIF recently completed a $55bn acquisition of EA.
- CEO Brian Ward of Savvy Games Group has resigned amid these developments.
Saudi Arabia’s Public Investment Fund (PIF) is reportedly considering a merger between Electronic Arts (EA), acquired earlier this year in a $55bn leveraged buyout, and its subsidiary, Savvy Games Group. Sources familiar with the situation informed Bloomberg that the merger aims to “ensure better coordination between its assets.” This potential consolidation follows the completion of EA’s record-breaking buyout, which placed it under new ownership.
Savvy Games Group, which is a subsidiary of the PIF, currently owns several gaming assets, including Scopely, the creator of Pokémon Go, and has stakes in major companies such as Capcom, Nintendo, and Koei Tecmo. It has been pivotal in advancing Saudi Arabia’s investment footprint in the video game sector, although it was not involved in the acquisition of EA.
Additionally, Savvy Games Group is pursuing the acquisition of Moonton, a Chinese mobile gaming company, for $6bn. However, sources suggest that this deal is unlikely to proceed until the merger with EA is finalized. Neither EA nor the PIF provided official commentary when approached by Bloomberg regarding these developments.
Notably, Brian Ward, the CEO of Savvy Games Group, stepped down from his position last week. Ward was instrumental in orchestrating several significant acquisitions and investments for the company, and his departure adds another layer of interest to the merger discussions.
The future trajectory of EA post-acquisition remains a topic of much speculation. Some industry experts express concerns that the terms of the leveraged buyout and the sizable debt burden could lead EA to shift away from its single-player titles and potentially reduce its workforce.
News Courtesy of Eurogamer
