Savvy Gaming Group, a subsidiary of the Saudi Arabian government's Public Investment Fund, has acquired a $1 billion stake in Embracer Group, a holding company that owns multiple media parent companies and game development studios.
Embracer Group has issued approximately 10,3 million B shares at a subscription price of around SEK 1 billion, or just over $103,47 billion, at a subscription price of SEK 99,9, Embracer Group said in a statement. With the acquisition, Savvy Gaming Group owns 8,1 percent of the company and 5,4 percent of the vote.
Embrace Group; THQ Nordic owns and operates several media parent companies and game development studios, including Gearbox Entertainment, Dark Horse Comics, Deep Silver, and Saber Interactive.
Savvy Gaming Group is Saudi Arabia's sovereign wealth fund with nearly $600 billion in miscellaneous assets worldwide, including the entire Newcastle United football club and major stakes in companies like Uber, Boeing, Facebook, Disney. Public Investment FundIt belongs to. The Public Investment Fund also added a five percent stake in Nintendo this year to its gaming investment collection, which includes shares acquired from Electronic Arts, Take-Two Interactive and Activision Blizzard.
Savvy Gaming Group made a huge splash in esports in January 2022, bringing together the two largest tournament organizers in the industry, ESL and FACEIT, for nearly $1,5 billion. In 2020, both Riot Games (via the LEC) and BLAST's agreements with NEOM, a Saudi city development project supported by the Public Investment Fund, were terminated following public and internal backlash to announcements of the first deals.
Embracer said today that the proceeds from the acquisition will be used to further strengthen its financial position, which will enable it to continue to acquire new game publishers and game development studios to supplement existing operations.
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