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Saudi Arabia bought $1 billion into Capcom and Nexon

Saudi Arabia bought $1 billion into Capcom and Nexon

A new report has confirmed Middle-eastern nation Saudi Arabia bought $1 billion into Capcom and South Korean publisher Nexon, the next investment they’ve made into tech and gaming.

The news that Saudi Arabia bought $1 billion into Capcom and Nexon came via updates from the country’s Public Investment Fund, which now owns over 5% in both companies (via Bloomberg).

Previously, the country acquired over $3 billion worth of stocks in several major gaming companies including: Activision Blizzard, Electronic Arts, and Take-Two Interactive.

Another large investment from Saudi Arabia brought in roughly 33% of shares into SNK Corporation, making them the largest shareholder in the veteran Japanese developer.

All of the gaming focused investments come from the aforementioned Public Investment Fund, which is reportedly reportedly key to crown prince Mohammed bin Salman’s goal of making their country less dependent on revenue from their vast oil reserves.

PIF’s website states their goal is to be a “a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia”.

Concerns behind numerous gaming publishers and developers getting partial or majority stake from Saudi Arabia keep surfacing as the the country has a history of human rights abuses – including the purported murder of journalist Jamal Kashoggi at the behest of the crown prince.

When considering Saudi Arabia owns a large chunk of Activision Blizzard shares, should the recent Microsoft acquisition of the company, they stand to profit from the acquisition as share values have risen to $95 (the quoted price for the acquisition). When they bought shares they were priced at $79-91 per share.

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