A $1 billion stake in Embracer Group, equating to 8.1 per cent of its shares, has been acquired by Saudi Arabia.
This stake comes via subsidiary Savvy Gaming Group, Gamesindustry.biz reported.
Wholly owned and operated by the Public Investment Fund in Saudi Arabia and led by its crown prince Mohammed bin Salman, Savvy Gaming Group has been making a considerable number of investments in games companies of late – ranging from a five per cent stake in Nintendo to the $1.05 billion purchase of ESL Gaming.
Making investments
Embracer Group has also made numerous acquisitions in recent months, recently completing a 96 per cent majority acquisition of Asmodee Group for a day one consideration of approximately $3.01 billion. The company also announced an agreement to acquire Square Enix studios Crystal Dynamics, Square Enix Montréal, and Eidos Montréal for $300 million.
Embracer Group CEO Lars Wingefors stated that its prior acquisitions have been a “strategic pillar”. Commenting on Saudi Arabia’s investment in Embracer Group itself, he said: “Over the past few years, Saudi-based entities have become one of the most significant investors in the global gaming market.
“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.”
Earlier this year, Embracer Group announced results for its three months ending December 31 2021 with net sales increasing 135 per cent to more than $1.2 billion.
