A $55 billion acquisition is complete, and a merger between EA and Savvy Games may be on the cards. Where are the opportunities, and what are the risks?
A $55 billion acquisition is complete, and a merger between EA and Savvy Games may be on the cards. Where are the opportunities, and what are the risks?

Saudi Arabia’s Public Investment Fund is considering a possible merger between Electronic Arts and Savvy Games Group, following the completion of its acquisition of EA as part of an investment consortium deal valued at around $55 billion. A merger could create opportunities for growth and cost savings, but its success depends on combining companies, games, and talent without damaging their value.

What happened?

Could bringing two major companies in the gaming industry together create a more efficient and profitable business, or might greater scale make it harder to manage?

That question came into focus after Bloomberg reported on September 10, 2026, that Saudi Arabia’s Public Investment Fund is considering combining Electronic Arts (EA) and Savvy Games Group.

According to the report, no final decision had been made about a merger, meaning this is a potential strategic option, not an announced deal.

It started with a $55 billion deal

On August 4, 2026, Electronic Arts announced the completion of its acquisition by a consortium comprising the Public Investment Fund, Silver Lake, and Affinity Partners.

The deal valued the company at around $55 billion, while shareholders received $210 in cash for each share.

It is important to distinguish between the two figures: enterprise value is a measure that includes equity value and net debt or related financial adjustments, while $210 is the cash consideration specified per share in the deal.

After the acquisition was completed, the company’s shares stopped trading on Nasdaq and it became privately owned.

Why might the fund combine the two companies?

One possible economic motive is to bring complementary businesses in the gaming industry together.

EA is known for games such as EA Sports FC and The Sims, while Savvy has investments and businesses in mobile gaming and esports.

Combining these businesses could help diversify revenue streams, share expertise, and make use of common distribution networks and technologies.

This is where an economic concept known as “economies of scope” comes in.

It refers to the potential for producing multiple products or providing different services using shared resources at a lower cost than managing each activity separately.

If two companies can share technology, specialist teams, or marketing tools, some costs may fall. But this is not guaranteed; the outcome depends on management’s ability to achieve genuine integration.

Where does Moonton fit into the story?

In March 2026, an agreement was announced under which Savvy Games Group would acquire Chinese company Moonton, developer of Mobile Legends: Bang Bang.

Reports valued the deal at more than $6 billion.

The deal matters because it could strengthen Savvy’s presence in the mobile gaming market, a major sector of the global industry.

According to Bloomberg, the completion of the Moonton deal is one factor linked to the timing of any potential merger between EA and Savvy.

How big is the global gaming market?

Market research firm Newzoo expects global video game market revenue to reach $213.9 billion in 2026, an anticipated year-over-year increase of 6.1%.

This estimate includes mobile, PC, and console games, but not all digital entertainment activities.

These figures illustrate the scale of the market in which companies compete to attract players, generate revenue, and develop new games.

Why doesn’t a merger guarantee success?

Despite the potential economic opportunities, major mergers face challenges that may reduce the expected benefits.

The first is a difference in corporate cultures. Companies are made up of more than financial assets and games; they also comprise developers, designers, and creative teams accustomed to different ways of working.

Poorly planned restructuring could lead to the loss of talent or slow game development.

The second challenge concerns competition. Large deals may be reviewed by regulators to ensure they do not harm competition or limit consumer choice.

The third challenge is operational management. Running multiple companies across different markets and platforms may be more complex than it appears when a deal is announced.

How would we measure the success of a merger?

It is not enough for the company to become larger in terms of its value or the number of games it owns.

Instead, we should look at tangible outcomes: Have operating costs fallen? Has game quality improved? Has the player base grown? And has the company retained talent and developed new products?

These indicators help show whether combining the companies created additional economic value or merely increased the size of the entity.

But!

The possibility of a merger between EA and Savvy is an example of the transformation underway in the gaming industry, as companies and investors compete to build businesses that bring together content, technology, and different platforms.

But greater scale does not necessarily mean greater efficiency or higher profits.

A deal may be completed with money, but its true economic value is tested by the quality of its execution and the results that follow.