Saudi Arabia Buys $1 Billion Stake in Embracer Group - News
by William D'Angelo , posted on 08 June 2022 / 2,187 Views
Saudi Arabia's Public Investment Fund subsidiary Savvy Gaming Group has bought a $1 billion stake in Embracer Group.
The fund is equal to 8.1 percent of the gaming company's shares and is enough to make Savvy Gaming Group the second biggest owner of shares in Embracer Group, according to VideoGamesChronicle.
Saudi Arabia crown prince Mohammed bin Salman is the chair of the Public Investment Fund as it looks to make the Saudi Arabi economy less dependent on oil.
The Public Investment Fund has made a fair number of investments in video game companies, including a 5.01 percent stake in Nintendo, which makes it the fifth largest shareholder in Nintendo. The fund has also bought a 5 percent in two other Japanese companies - Capcom and Nexon.
Embracer founder and group CEO Lars Wingefors in a statement said, "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."
Embracer Group recently entered an agreement to acquire Crystal Dynamics, Eidos Montreal, and Square Enix Montreal from Square Enix. The deal includes over 50 IPs like Tomb Raider, Deus Ex, Thief, Legacy of Kain, and many more.
The deal is worth $300 million and Embracer Group will pay it on a cash and debt-free basis that will be paid once the transaction closes later this year between July and September.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
More Articles
this is the same saudi price who recently bought into SNK as well. The guy must really be into gaming to want to invest.
He’s a genuine piece of crap. With one hand he’ll say he supports journalism while executing journalists. He’ll say he supports women’s rights while executing women for protesting for women’s rights. He’ll say he opposes terrorism while being the world’s largest sponsor of Islamic terrorism.
That's a bit excessive.
This needs to end.
Not sure why the downvotes are a thing, if the bigots on this site actually looked up a little history for once (instead of being too bust acting like fanboys), they'd notice that the prince is actually a prick who even has his own Assassination group to kill those who speak shit about him.
The downvotes only show that you support a prince who doesn't support women's rights, human rights and Democracy. Don't be a tard.
