It was a devastating period for the gaming industry, with large acquisitions and large investments on the rise, from Tencent’s continued expansion to Sony in the process of buying Bungie and Microsoft at a similar stage in its acquisition of Activision Blizzard. In terms of financial maneuvering, we’ve also seen some notable moves from Nintendo. It recently completed another major buyback of its own shares, and will be pursuing a 10-to-1 stock split later this year; the last step is usually taken by companies with strong financial health.
Today, the focus is shifting to the Saudi Arabian Public Investment Fund (PIF), the government’s sovereign wealth fund. According to bloomberg, PIF acquired a 5.01% stake in Nintendo, saying the move was for investment purposes. This stake makes him the fifth largest shareholder in Nintendo.
Bloomberg quoted a Nintendo spokesperson as saying the company learned of the investment from news reports and would not comment on individual shareholders.
The Saudi Arabian Foundation has been especially active this year; in February, he spent about $1 billion on stakes in two companies. Most of it was spent on Nexon’s 5%, a Korean firm with hugely successful online gaming. However, the most notable investment in terms of Nintendo/Console was the purchase of 5% of Capcom, which was valued at about $332 million at the stock price of the time. Elsewhere Electronic Gaming Development Company, a subsidiary of the Mohammed bin Salman Foundation, is now reportedly owns over 96% of the iconic gaming company SNK.started investing in the company back in 2020.
The Saudi Arabian Sovereign Investment Fund also owns major stakes in Activision Blizzard (in anticipation of the aforementioned takeover by Microsoft), EA and Take-Two, and made headlines in sports for its majority stake in Newcastle United FC in England. , along with funding for upcoming Golf Activities LIV.
Saudi Arabia’s PIF investment in recent years has attracted attention and criticism due to issues such as the human rights situation in the country, with organizations such as Amnesty monitoring the actions of the nation in this regard.