Published , by TJ Denzer
Published , by TJ Denzer
Among the various video game and technology company acquisition news that has filled 2022, one of the more interesting forces has been Saudi Arabia, which is currently using a state fund to diversify the nation into entertainment and away from oil. It has led to investments in Capcom, Electronic Arts, Activision Blizzard, Nexon, SNK, and more, and it seems Saudi Arabia isn’t nearly done either. Savvy Gaming Group, a state-backed acquisitions company, has announced intention to put around $37 billion USD more investment into the gaming industry with $13 billion put aside to acquire a “leading game publisher”.
The upcoming moves by the Savvy Gaming Group were shared in a recent report from Axios. According to a report from the Saudi royal family’s press agency, the Savvy Gaming Group has intention to invest a total of around $37.8 billion USD into further expanding Saudi Arabia’s exponentially growing state in the video game industry. Of that $37.8 billion, $13 billion has been earmarked “for the acquisition and development of a leading game publisher to become a strategic development partner.”
Saudi Arabia has been aggressive in its buying of stakes and investments in various major game developers and publishers with the use of its Public Investment Fund (PIF). State-backed groups like Savvy Gaming Group acquired nearly all of SNK over the course of the year. It also grabbed minority investments in Nexon and Capcom, as well as a 5 percent stake in Nintendo. It even currently has an 8.1 percent stake in Embracer Group, which has been on its own acquisitions spree.
With no word yet of what “leading game publisher” Saudi Arabia is using the $13 billion USD to acquire, it looks like we’ll be on the lookout for a major announcement in the near future. Stay tuned for further updates.