Saudi Arabia continues its investments in the video game industry. The Saudi sovereign wealth fund has just completed a new major transaction by acquiring shares in the Embracer group for a value of 1 billion dollars.
The year 2022 confirms Saudi Arabia’s ambitions to invest in the video game sector. Indeed, in 6 months, the country has already been the driving force behind the merger-acquisition of the e-sports leagues ESL Gaming and FACEI in January and the purchase of almost the entire value of SNK Corporation in February before entering the capital of Nintendo for 5.01% of its capital.
An investment that confirms Saudi Arabia’s interest in video games
The kingdom’s new operation took place through Savvy Gaming Group, born from the merger-acquisition of e-sports leagues in January. The Saudi sovereign wealth fund thus owns 8% of the shares of Embracer, a European video game distribution company based in Sweden and which has achieved an annual turnover of 1.6 billion euros in 2021.
Potential to be exploited in the ANMO region
In recent years, Saudi Arabia has become one of the most important investors in the global video game market. In addition, the ANMO region (North Africa, Middle East) is experiencing extremely rapid growth in the industry, thanks in part to a larger number of active gamers than in the United States. According to a statement from Embracer’s CEO Lars Wingefors, the investment provides Embracer with the opportunity to “strengthen its financial position and pursue its acquisition strategy by complementing its existing business with new game publishers, game development studios or other assets in the region.