Saudi wealth fund takes $1bn stake in gaming group Embracer

Saudi wealth fund takes $1bn stake in gaming group Embracer

Saudi Arabia’s sovereign wealth fund has spent $1bn on a stake in Swedish gaming company Embracer Group as it deepens its push into the global games market.

The acquisition of 100mn shares will make Public Investment Fund’s Savvy Gaming Company the second-biggest investor in Embracer — holding an 8 per cent stake — after its founder and chief executive Lars Wingefors.

Savvy Gaming Company was launched earlier this year by PIF, one of the biggest sovereign wealth funds in the world. It has already made a number of big acquisitions in esports and gaming, including ​​the acquisition of Modern Times Group’s esports division for $1bn in January this year, along with the competitive multiplayer technology platform Faceit.

The $1bn purchase saw Embracer’s share price gain 10 per cent in morning trading on Wednesday to reach SKr95.2.

It comes as dealmaking has risen sharply in the gaming sector since the start of the pandemic as big tech and entertainment companies have looked to increase their exposure to an industry that already dwarfs other forms of mass-market entertainment.

Wingefors said the relationship with Savvy would help Embracer set up a regional hub in the country so it could expand into the Middle East and north Africa, which