Saudi Arabia invests billions of dollars in the gaming industry

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Suddenly, several of the largest companies in the video game industry have received large investments from Saudi Arabia

Video games have been growing for thirty years and becoming a multibillion dollar industry. And where there is money, there is international interest and organizations that will seek to join the party with their own economic and political goals. After all, how else can they explain Tencent’s expansion in the last ten years? And China is the only country that has companies of this type. In the case of Saudi Arabia, this country has decided to participate in the video game industry. What results will this decision have?

Who did this? The Public Investment Fund of Saudi Arabia, which has bought an overwhelming number of shares in Activision Blizzard, Electronic Arts and Take-Two Interactive Software. The funds have bought these shares a few months ago and they represent millions of shares in the largest companies in the industry. 

The kingdom’s Public Investment Fund bought 7.4 million shares, worth $1.06 billion, in Electronic Arts and 14 million shares, worth $1.4 billion, in Activision Blizzard, the filing showed.

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The wealth fund raised its overall holdings of US equities, including stakes in Uber, Carnival, and Take-Two Interactive to nearly $12.8 billion in the quarter, up from $7 billion in the third quarter. Last quarter, it dumped some exchange-traded funds and stocks including Warren Buffett’s Berkshire Hathaway.

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The value of its stake in Uber, its biggest US stock holding, rose to $3.7 billion in the fourth quarter, from $2.6 billion a quarter ago, after the ride-hailing firm’s stock rose nearly 40% quarter-on-quarter. PIF was an early investor in Uber, announcing a $3.5 billion investment in the company three years before its stock market debut.

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As part of its five-year-strategy, the $400 billion wealth fund plans to grow its assets under management to over 4 trillion riyals ($1.07 trillion) by the end of 2025.

They have made a similar investment in the world of wrestling, which has led to their own problems.

 

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