Saudi Arabia Acquires 8.1% Of Embracer Group In A $1 Billion Deal

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A Saudi Arabian prince has acquired minority stake in Swedish video game holding company Embracer Group through Savvy Gaming Group. Savvy, a subsidiary that’s fully-owned and operated by the Saudi Arabia Public Investment Fund (PIF) headed by crown prince Mohammed bin Salman, purchased $1 billion worth of Embracer’s shares which equates roughly an 8.1% stake in the company.

Saudi-based companies have apparently become the one of the biggest investors in the gaming industry as the Middle East and North African gaming markets continue to grow. According to Embracer CEO and Founder Lars Wingefors, the MENA region generated $5.7 billion in revenue in 2021 and has more active gamers than Western Europe or the US.

“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,” said Wingefors.

GamesIndustry.biz reports that the Saudi PIF also bought a 5% stake in Nintendo in May and owns another $1 billion of shares from Capcom and Nexon. The PIF also acquired 96% of Japanese video game company SNK, creator of the King of Fighters series.

Embracer Group, on the other hand, fully owns several video game developers and publishers including Gearbox Entertainment, Perfect World Entertainment (now Gearbox Publishing), Cryptic Studios, THQ Nordic, Deep Silver, Dark Horse Interactive, and Saber Interactive among others. It’s also in the process of acquiring three studios from Square Enix Europe - Crystal Dynamics, Eidos Montreal, and Square Enix Montreal.