Saudi’s PIF acquires $1bn stake in Swedish gaming company Embracer

By Arya M Nair, Official Reporter
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Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, has acquired a $1 billion stake, approximately 8.1 percent shares, of Embracer Group, a Swedish video game and media holding company.

The shares will be issued to Savvy Gaming Group, a games and esports-focused subsidiary of PIF. The acquisition will enable Embracer to establish a regional hub in Saudi Arabia and pave the way for future investments in the region. The acquired stake guarantees a weighty position in the company’s decision-making, and has become Embracer’s second-biggest shareholder.

Brian Ward
Brian Ward
CEO – Savvy Gaming Group

“Savvy Gaming Group has committed to invest heavily in the games and esports industry and to materially strengthen the global games community. This investment in Embracer Group is a starting point for a long-term commitment to the company. The Embracer team has built a truly unique and leading ecosystem of entrepreneurs and creators at a scale that we believe will continue to generate enormous value for the games community in the coming years. We are very much looking forward to strengthening our relationship and supporting Embracer as they execute their global strategy.”

“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 $5.7 billion in 2021 revenues and more active gamers than either the US or Western Europe,” said Embracer founder and CEO, Mr. Lars Wingefors.

Last month, the sovereign fund acquired a 5.01 percent stake in the Japanese multinational video game company, Nintendo. In February 2022, PIF acquired a stake of more than 5 percent in Capcom and Nexon, with a total value of over $1 billion. In April, it also acquired a 96 percent stake in King of Fighters developer, SN. In 2021, the Fund invested over $3 billion in Activision Blizzard, Electronic Arts, and Take-Two Interactive.

Related: Saudi PIF acquires 5% stake in Japanese gaming company Nintendo