The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, will acquire 100 million shares in Embracer Group, marking its second $1 billion investment in Swedish gaming.
Savvy Gaming Group, a gaming company fully backed by the PIF, will make the acquisition.
- The PIF will purchase an 8.1% stake in Embracer.
- The stake is valued at $1.05 billion.
The pending acquisition by Savvy Gaming comes after it purchased Swedish esports tournament and league operators ESL and FACEIT in January 2022 for a combined $1.5 billion.
Embracer, a video game and media holding company, has a portfolio that includes more than 230 games. It generated $534 million in revenue in fiscal Q4, a 117% increase year-over-year.
The holding company has made several acquisitions and mergers over the last few years.
In November 2020, Embracer purchased 12 game studios and a PR firm in a single day. Last February, it announced plans to acquire mobile game maker Easybrain for $640 million.
Two months later, Embracer closed its merger with Gearbox Entertainment in a deal worth $1.3 billion. Last month, it agreed to acquire development studios Crystal Dynamics, Eidos, and Square Enix Montreal for $300 million.
Committed to Gaming
The PIF, led by Saudi Crown Prince Mohammed bin Salman, continues to expand its reach in a global gaming industry expected to hit $222 billion in 2022, per Data.ai.
Last month, the fund acquired a 5% stake in Nintendo for $3 billion. It also has investments in Capcom, Activision Blizzard, EA, and others.
