Saudi Arabia’s Public Investment Fund is reportedly considering a plan to combine Electronic Arts with its gaming subsidiary, Savvy Games Group, according to sources cited by Bloomberg. The reported proposal would place the United States based publisher inside the Saudi state fund’s broader gaming portfolio, a move the sources said is intended to ensure better coordination between its assets. Both the PIF and EA declined to comment to Bloomberg, and a spokesperson for Savvy Games did not respond to requests for comment. The reported plan follows the PIF’s completion last month of a $55 billion leveraged buyout of EA, which made the fund the developer’s majority owner.<\/p>\n
Savvy Games Group’s current portfolio includes the mobile game developer and publisher Scopely, the esports operators ESL Gaming and FaceIt, and a $1 billion stake in the Swedish games group Embracer. The company also holds stakes in a range of international game companies, among them Nintendo, Capcom, Nexon, Take-Two Interactive, Activision Blizzard, and Koei Tecmo.<\/p>\n
Savvy is separately in the process of acquiring the Chinese mobile games company Moonton for $6 billion, a deal that was announced in March. Sources indicated that merging EA into Savvy is unlikely to take place until that acquisition is complete. No timetable for the reported combination has been given, and none of the parties involved has confirmed that a merger is under consideration.<\/p>\n
The PIF led the $55 billion leveraged buyout of EA, which was completed last month and made the fund the developer’s majority owner. A leveraged buyout is a transaction in which the acquisition is financed largely with borrowed money, with the acquired company’s assets typically used as collateral. The acquisition of EA was announced last September and was led by a group of investors including the PIF, the private equity firm Silver Lake, and Affinity Partners.<\/p>\n
In a letter to staff, EA said its mission, values, and commitment to players and fans around the world would remain unchanged. The company said EA would maintain creative control and that its track record of creative freedom and player-first values would remain intact.<\/p>\n
The consortium, EA said, believes in its vision, its leadership, and its focus on creating games, stories, and content that reflect a range of experiences and delivering them to its global player community. EA added that the investors are investing in the creativity that defines the company.<\/p>\n
Last week, Brian Ward stepped down as chief executive of Savvy Games. Turqi Alnowaiser, deputy governor of the PIF and head of its International Investments Division, was appointed interim chief executive.<\/p>\n
In a note to staff, Ward wrote that as Savvy embarks on its next period of transformational growth, this is the right time for new leadership for that evolution. Ward had served as chief executive of Savvy Games since its establishment in 2021, and he oversaw a $37.8 billion investment programme to expand Saudi Arabia’s presence in the global games industry.<\/p>\n
The reported proposal would concentrate a large share of the global games industry under a single state fund. EA is one of the largest publishers in the world, with major franchises in sports, shooters, and live service games, while Savvy’s holdings span mobile publishing, esports, and minority stakes in several major platform holders and publishers.<\/p>\n
Saudi Arabia has used the PIF to build positions across entertainment, sport, and technology as part of a broader economic diversification strategy. The games industry has been a central part of that effort, both through direct acquisitions and through stakes in established companies.<\/p>\n
Any combination of EA and Savvy would also draw attention from competition and investment regulators in the markets where both companies operate, given the size of the assets involved and the role of a sovereign wealth fund as the controlling owner. No regulatory filings related to a merger have been reported.<\/p>\n
The reported plan remains unconfirmed. Savvy’s $6 billion acquisition of Moonton is expected to complete before any combination of EA and Savvy is considered, according to the sources cited by Bloomberg. Further details may emerge as that deal closes and as Savvy’s interim leadership sets out its priorities. The PIF, EA, and Savvy have so far made no public statements on the matter.<\/p>\n","protected":false},"excerpt":{"rendered":"
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