Saudi Arabia's Public Investment Fund (PIF) is considering merging publisher Electronic Arts with its gaming division Savvy Games Group into a single joint structure to optimize assets.
Major changes in the gaming industry
According to a report by Bloomberg, the merger is intended to improve coordination between the fund's assets. As a reminder, Saudi Arabia recently completed a deal to acquire EA for a record $55 billion.
Savvy Games Group is the fund's primary vehicle for expanding into the video game industry. The holding already includes mobile publishers, esports giant ESL, as well as stakes in leading companies such as Capcom, Koei Tecmo, and Nintendo.
What lies ahead for the companies' projects?
If the restructuring is completed, mega-franchises such as EA Sports FC, Apex Legends, and mobile hits will come under unified management. At the same time, analysts note that due to debt obligations following the EA buyout, the company may reconsider its single-player game development strategy and focus on live-service products.
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