Saudi PIF considers merging $55bn EA with Savvy Games to create gaming giant: report

The Saudi Arabian sovereign wealth fund, PIF, is reportedly considering the merger of video game companies Electronic Arts (EA) and Savvy Games, according to a media report. This potential consolidation of the two firms controlled by PIF could create a new industry giant, bringing together popular titles such as "EA Sports FC," "Battlefield," and "The Sims," as well as the smartphone games "Monopoly Go!" and "Pokémon GO" owned by Savvy, Bloomberg reported on Thursday citing insiders.

However, a final decision has not been made, and it is unlikely before Savvy completes its $6 billion purchase of the Chinese mobile game developer Moonton. PIF declined to comment, and EA and Savvy were initially unresponsive to requests for comment. The sovereign fund acquired EA last month in a consortium for about $55 billion, and from the stock exchange.

Such a venture might prompt antitrust regulators, who have recently scrutinized large transactions in the gaming industry, including Microsoft's acquisition of Activision Blizzard. The sector is currently grappling with a slowdown following the boom during the COVID-19 pandemic, leading to cost-cutting and layoffs, while companies strive to achieve economies of scale and secure stable revenue streams.