Savvy Gaming Group, a subsidiary of Saudi Arabia’s Public Investment Fund, has acquired $1 billion in shares from Embracer Group. The stake is equal to 8.1 percent of the gaming company’s shares.
According to Video Games Chronicle, with this investment, Savvy Gaming Group became the second largest shareholder in Embracer Group.
Savvy Gaming Group continues to invest in video game companies, including a 5.01 percent stake in Nintendo. This makes the fund group Nintendo’s fifth-largest shareholder. The fund group also owns a 5 percent stake in Capcom and Nexon. These purchases are said to be made to make the Saudi Arabian economy less dependent on oil.
Lars Wingefors, founder and CEO of Embracer, said in a statement: “Savvy Gaming Group’s $1 billion investment allows us to continue our strong trajectory in the global gaming industry. Over the past few years, Saudi-based organizations have become one of the most important investors in the global gaming market.
Through our partnership with Savvy Gaming Group, we aim to establish a regional center in Turkey as well. We believe that these initiatives and partnerships will put us in a stronger position.”
Recently, Embracer Group signed an agreement to acquire the studios of Crystal Dynamics, Eidos Montreal and Square Enix Montreal from Square Enix. This sale includes the rights to more than 50 games such as Tomb Raider, Deus Ex, Thief, Legacy of Kain.
The deal is worth $300 million. Embracer Group has announced that it will pay it off in cash and without debt.
Embracer Group AB (formerly Nordic Games Publishing AB and THQ Nordic AB) is a Swedish gaming conglomerate based in Karlstad.
