• Loading stock data...
Thursday, November 14, 2024
Want a chance to win $250? Take a few minutes to complete our survey and help us improve with your feedback! Take the Survey

Saudi Arabia Bets $3.3B on Video Game Industry

  • The Public Investment Fund of Saudi Arabia has acquired over $3 billion worth of stocks in the video game industry.
  • The investment also represents an evolving Saudi culture that has taken an interest in video games.
Jasen Vinlove-USA TODAY Sports

Prince Mohammed of Saudi Arabia has described himself as part of the country’s first generation of gamers. He once mentioned the “Call of Duty” series as a favorite hobby. Now, he’s investing in the industry.

During the fourth quarter of 2020, the Public Investment Fund of Saudi Arabia — headed by Prince Mohammed — acquired $3.3 billion worth of stock in three of the biggest video game companies in the world.

  • 14.9 million Activision Blizzard shares worth $1.4 billion
  • 7.4 million Electronic Arts shares worth $1.1 billion 
  • 3.9 million Take-Two Interactive shares worth $826 million

Since the start of the fourth quarter, shares of Activision Blizzard, which publishes “Call of Duty,” are up about 27%. “Madden” publisher Electronic Arts’ shares have climbed nearly 12%, and shares of Take-Two — publisher of “NBA 2K” and “Grand Theft Auto” — have increased by around 18%.

The investment is part of a bigger plan to help alleviate Saudi Arabia’s reliance on oil.

In recent years, the Saudi kingdom has poured billions into American companies like Uber, Disney, Carnival, Live Nation, Citigroup, Facebook and more. The value of its fund’s U.S. holdings rose to $12.8 billion in the fourth quarter from $7 billion a quarter prior.

Yasir Al Rumayyan, governor of the sovereign wealth fund, has said that the nation missed out on investing in American stock at a bargain during the 2008 financial crisis, and doesn’t want to miss a similar opportunity during the COVID-19 pandemic.

“You don’t want to waste a crisis. So for us, definitely we are looking into any opportunities,” Al Rumayyan told finance professionals at a virtual conference last April.

The $400 billion sovereign wealth fund wants to increase the worth of all the assets it manages to over $1 trillion by the end of 2025.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Vanderbilt Commodores quarterback Diego Pavia (2) throws the ball as Auburn Tigers take on Vanderbilt Commodores at Jordan-Hare Stadium in Auburn, Ala., on Saturday, Nov. 2, 2024. Vanderbilt Commodores defeated Auburn Tigers 17-7.

Vandy QB Pavia Sues NCAA for 2 More Years of Eligibility

Diego Pavia beat Alabama. Can he beat the NCAA’s eligibility rules?

Lululemon-Fanatics Collab With NHL Sees ‘Explosive’ First-Day Sales

The premium collection made up 80% of all NHL merch sales.
Feb 1, 2024; Toronto, Ontario, CANADA; Team King defender Savannah Harmon (15) scores against Team Kloss goaltender Nicole Hensley (29) during the PWHL 3-on-3 Showcase during NHL All-Star Thursday at Scotiabank Arena.

PWHL Will Add Two Teams in Expansion Move

Possible new sites include Detroit, Pittsburgh, and Quebec City.
The NCAA logo on the field in the closing second of the Anderson University inaugural football game with St. Andrew's University on Spero Financial Field at Melvin and Dollie Younts Stadium at Anderson University in Anderson, S.C. Saturday, September 7, 2024. Anderson won 51-14.

Charlie Baker Thinks There’s Room for Private Equity in College Sports

College athletic departments are seeking out more revenue streams.
podcast thumbnail mobile
Front Office Sports Today

Will Drew Brees Return to Broadcasting?

0:00

Featured Today

Former President Donald Trump waves to the crowd as he exits the putting green with his aide Walt Nauta, left, during the final round of the LIV Golf Bedminster golf tournament at Trump National Bedminster on Sunday, Aug. 13, 2023.
opinion

Trump Win Puts Sports Back in the White House

With Trump back in the White House, sports get more political again.
Members of the NY Giants run onto the field to start the game between the New York Giants and the Washington Commanders at MetLife Stadium in East Rutherford on Sunday, Nov. 3, 2024.
November 8, 2024

The NFL Is Becoming the League With No Borders

Where will the NFL go next? International expansion will only get bigger.
November 5, 2024

NFL Center Connor McGovern Is the Heir to a Potato Empire

The NFL vet’s family provides potatoes for McDonald’s, Wendy’s, and others.
Vanderbilt Commodores fans head to the south end zone as the goal post is taken down by exuberant fans after beating No. 1 Alabama 40-35 at Vanderbilt Stadium in Nashville, Tenn., Saturday, Oct. 5, 2024.
opinion
November 2, 2024

Something New in College Football This Year: Parity

Upsets, surprises. CFB is more fun on the field than the NFL.

Endeavor, TKO Consolidate Sports Assets, Hoping They’re Better Together

The move brings On Location, Professional Bull Riders, and IMG under TKO.
Sep 11, 2024; Los Angeles, California, USA; The Nike shoes worn by Seattle Storm center Mercedes Russell in the first half against the LA Sparks at Crypto.com Arena.
opinion
September 28, 2024

New Nike CEO Must Do It

The biggest task the new CEO faces is intangible: Refresh the brand.
October 1, 2024

Nike CFO Says ‘Adversity Creates Sharper Focus’

Amid a downbeat but expected set of earnings, Nike says it sees signs of optimism.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
A Nike swoosh on a building in Eugene, Oregon.
September 23, 2024

Wall Street: Things Will Get Worse for Nike Before They Get Better

Some analysts are skeptical of how much the new CEO will change.
Crypto.com soccer advertising
September 15, 2024

The Champions League Is Back. So Is Crypto Sponsorship

Crypto investment is making its debut in the biggest European soccer competition.
Sep 9, 2024; Santa Clara, California, USA; San Francisco 49ers wide receiver Deebo Samuel (1) warms up before a game against the New York Jets at Levi's Stadium.
September 12, 2024

The NFL’s Private Equity Era Won’t Be the Bloodbath You Think—for Now

“It’s a different kind of investment thesis entirely.”
ESPN commentator Jay Williams speaking at a conference.
September 11, 2024

Jay Williams Supports PE in College Sports: ‘I Would Like to Own 49% of Duke Basketball’

Williams wants in when PE gets into college sports.