Saudi Arabia reportedly looking at merging Electronic Arts with Savvy Games Group

Saudi Arabia’s Public Investment Fund (PIF) completed a majority acquisition of Electronic Arts (EA) in August, giving the sovereign wealth fund control of the major game publisher. A Bloomberg report now suggests the PIF is exploring a merger between EA and its gaming subsidiary, Savvy Games Group, though no final decisions have been made. The proposed merger would align EA with Savvy Games Group’s existing subsidiaries, including ESL Faceit Group and Scopely, as well as the recently announced Moonton acquisition.

The potential merger is expected to streamline the PIF’s gaming strategy by consolidating operations under a single umbrella, though regulatory hurdles remain a significant obstacle. The combined entity would be a global gaming giant, raising concerns about market dominance and antitrust scrutiny. Analysts note that mergers often lead to cost-cutting measures, including layoffs, as seen with EA’s recent debt-driven restructuring following the PIF’s acquisition.

Saudi Arabia’s motivations may extend beyond strategy, as the kingdom faces tightening fiscal conditions despite its oil wealth. Merging EA with Savvy Games Group could reduce duplication in services and operations, lowering expenses. However, the proposal faces uncertainty due to regulatory challenges and geopolitical sensitivities, particularly given the PIF’s leadership under Mohammed bin Salman.

The proposed merger’s feasibility may hinge on political and regulatory connections, including ties between bin Salman and U.S. President Donald Trump. These relationships previously facilitated the PIF’s acquisition of EA, avoiding the scrutiny faced by Microsoft’s Activision Blizzard deal. Electronic Arts declined to comment, while the PIF and Savvy Games Group have not yet responded to requests for clarification.