One of this year’s biggest gaming stories is the $55 billion sale of Electronic Arts to a group of private investors including Saudi Arabia’s Public Investment Fund. Subsequently, there have been rumors that Saudi Arabia is backing Paramount’s bid for Warner Brothers, which Paramount has denied. Now, a new report suggests that the PIF won’t be making any new major purchases any time soon after experiencing a cash-flow problem.
According to The New York Times, the PIF has been hit by a number of investments that are underwater financially. The report specifically mentioned that the planned Saudi Arabian city Neom and a ski resort with robot workers are among the PIF assets that are currently flailing. Saudi Arabia’s wealth still stems from its vast oil deposits, but the kingdom has limitations on how much oil it can sell without violating agreements and treaties already in place. That could potentially mean PIF has been spending resources faster than Saudi Arabia can replenish the fund.
PIF spokesperson Marwan Bakrali denied the report and told the New York Times that the PIF still has $60 billion in cash and “similar financial instruments.” Technically, the sale of EA has yet to officially go through yet, and it still needs regulatory approval in the US and other countries before it can be finalized.
