The Public Investment Fund, which acquired 5.01% of Nintendo in May and 96% of SNK in April, has invested $1 billion to buy 8.1% of Embracer shares.
Saudi Arabia’s Public Investment Fund, an investment fund of Crown Prince Mohammed bin Salman, has acquired 8.1% of the shares of Embracer Group worth $1 billion. As you well know, this is not the first time that the PIF has made a large investment related to the video game sector: in the middle of last month, the investment fund acquired 5.01% of Nintendo shares for 3 billion dollars, while in early April it bought SNK almost entirely. Following the closing of the transaction, the PIF will be the second largest owner of Embracer Group shares.
As reported by VGC , this new investment by the PIF, as well as the rest of the investments that have been carried out so far, are aimed at making the country’s economy less dependent on oil revenues. Lars Wingefors, Founder and CEO of Embracer Group, said after the news broke: “The $1 billion investment allows us to proactively continue to execute our strategy from a position of strength across the global gaming industry. “. Wingefors has also commented that Saudi Arabia is the “largest country in this market” and that he has “seen the community of players and the opportunities” after visiting it.
“In recent years, Saudi Arabia-based entities have become one of the largest investors in the global gaming market, and the market in the Middle East and North Africa is one of the fastest growing, with revenue of $5.7 billion in 2021 and more active players than in the US or Western Europe This relationship will allow us to establish a regional hub in Saudi Arabia, from which we will be able to make investments throughout the Middle East and North Africa region , whether organically, through partnerships, joint ventures, or through acquisitions of companies run by strong entrepreneurs,” he added.
Earlier last month, Embracer Group announced the purchase of Crystal Dynamics, Eidos Montreal and Square Enix Montreal, three of Square Enix’s biggest studios, for $300 million . Included in this acquisition are such popular licenses as Tomb Raider , Deux Ex or Thief , among many others.