Saudi Arabia announced it had purchased $1 billion worth of shares from Embracer Group. The $1 billion stakes represent approximately 8.1% of Embracer Group.
The transaction was carried out through Savvy Gaming Group of Saudi Arabia, whose name we have heard before with various investments. Savvy Gaming Group, owned by the Saudi Arabian Public Investment Fund, led by Crown Prince Mohammed bin Salman, acquired ESL Gaming for $1 billion in January 2022. Similarly, the Saudi Arabian Public Investment Fund invested in the Japanese company by purchasing 5.01% of Nintendo shares last May.
Lars Wingefors, Founder and CEO of Embracer, said:
“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 $5.7B in 2021 revenues and more active gamers than either the US or Western Europe.”
“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 will be able to expand its operations in the MENA region thanks to Savvy Gaming Group. On the other hand, Savvy brought a new global company to Saudi Arabia with this share purchase.