Saudi's Savvy Gaming Group acquires $1B stake in Embracer Group
Savvy Gaming Group, a gaming company owned by Saudi Arabia's Public Investment Fund, has acquired 8.1% of Embracer Group.
The investment: It's part of Saudi Arabia's plan to change its public image.
- Savvy Gaming Group now owns the second-largest stake in Embracer Group after acquiring close to 100M shares.
- The investment from the Saudi-owned company totalled $1B and sees it hold an 8.1% stake in the Swedish company.
- This marks a continuation of the Public Investment Fund's push into gaming and esports, quickly following May's investment in Nintendo that saw it become the fifth-largest shareholder in the Japanese gaming giant.
The context: Gaming is a major part of Saudi Arabia's plans for the future.
- Chaired by Crown Prince Mohammed bin Salman, the Public Investment Fund has been investing heavily in gaming and esports. It bought over $3B in stock across Activision Blizzard, EA, and Take-Two in 2021.
- Savvy Gaming Group is a relatively new entity founded by the Saudi fund, making its first move in January 2022 when it announced it would acquire ESL, DreamHack, and FACEIT for $1.5B.
- Square Enix sold three studios (Crystal Dynamics, Eidos-Montréal, and Square Enix Montréa) and plenty of its IP (Tomb Raider, Deux Ex, Thief, Legacy Kain, and over 50 additional titles) to Embracer Group for $300M just a month ago. A little later, the Swedish holding company revealed that it lost $433M (SEK 4.29B) in its latest fiscal year.