Saudi Arabia's PIF continues to bet on the gaming industry by investing another $1 billion in return for a stake in Swedish videogame maker Embracer Group. PIFs owned Savvy Gaming Group has acquired almost 100 million shares, making them the second-largest owner with an 8.1% stake.
Lately, the sovereign wealth fund has been deepening its pockets into the gaming market to build global stakes across e-sports and video game makers. In January, Savvy bought the e-sports division of Modern Times Group worth $1.05 billion. Last month, PIF acquired a 5% stake in-game developer and publisher Nintendo. In addition, it has purchased similar stakes in two other Japanese game publishers, Capcom and Nexon, for a combined reported $1bn. PIF also owns stakes in EA, Take-Two and SNK through its fund and subsidiaries.
Following the deal, the announcement sent Embracer's shares up almost 10% during pre-market hours in Stockholm. The company has also put plans to set up a regional centre in Saudi Arabia, confirmed founder and group CEO Lars Wingefors.
Why it matters
The kingdom is currently home to 23.5 million gaming enthusiasts, equivalent to 67% the national population. Boston Consulting Group also estimates that consumption in Saudi Arabia is estimated to reach $6.8bn by 2030. The MENA region is one of the world's fastest-growing for video games, with it raking in $5.7 billion as well as having more active gamers than the US or Western Europe.
