Overview
- Bloomberg reported Thursday that the Public Investment Fund is considering merging Electronic Arts into its Savvy Games Group but has not made a final decision.
- People familiar with the talks say any move is likely paused until Savvy completes a separate $6 billion purchase of Chinese mobile studio Moonton.
- The PIF-led consortium closed a roughly $55 billion take-private of EA in early August, a deal that added substantial debt to EA’s balance sheet.
- Industry and employee accounts note the combined company would pair EA’s franchises like EA Sports FC and Battlefield with Savvy-owned mobile hits such as Monopoly Go and Pokémon GO, and that staff fear cost cuts and layoffs as the buyer seeks savings.
- Regulators and governments are expected to scrutinize the plan closely because of the size of the combined business and the PIF’s state-backed ownership, which could complicate approvals across the U.S., Europe and China.