It has been revealed that Saudi Arabia has gained a $1 billion stake in Embracer Group, which represents 8.1% of the companies shares.
This was done via the country’s Public Investment Fund (PIF), by its subsidiary Savvy Gaming Group. This makes them the second largest owner of shares for Embracer Group.
This is one of many moves by Saudi Arabia’s PIF in purchasing shares of major games companies.
Most recently they became 96% owners of SNK, and also put in $1 billion into Capcom and Nexon. They also became some of the biggest shareholders of companies such as Microsoft, Activision-Blizzard, Take-Two, and EA back in 2021.
PIF is chaired by crown prince Mohammed bin Salman, who has made one of his goals having Saudi Arabia’s economy not as reliant on the export of oil. This goes in line with his “Vision 2030” strategy previously, which intends to improve Saudi Arabia’s industries via his own wealth amassed through oil.
Embracer Group themselves also are no strangers to acquisitions. Most recently they’ve been in the news with their purchase of many IPs and companies previously owned by Square Enix as the latter plans on using funds from their sale for investing in blockchain technology and NFTs.
Embracer Group CEO Lars Wingefors provided a statement:
“Savvy Gaming Group’s investment of $1 billion enables us to continue executing our strategy proactively from a position of strength across the global gaming industry.
“Over the past few years, Saudi-based entities have become one of the most significant investors in the global gaming market, and the games market in MENA is one of the world’s fastest growing, with $5.7 billion in 2021 revenues and more active gamers than either the US or Western Europe.
“The largest country in this market, by far, is Saudi Arabia, and having visited Saudi Arabia, I have seen the gaming community and the opportunities first-hand.
“Our relationship with Savvy Gaming Group will enable us to set up a regional hub in Saudi Arabia, from which we will be able to make investments across the MENA region, either organically, via partnerships, joint ventures, or via acquisitions of companies led by strong entrepreneurs.”