Saudi Arabia’s Public Investment Fund Buys $1 Billion Worth of This Stock.

Saudi Arabia-backed Savvy Gaming Group has invested $1 billion into video game giant, Embracer, marking its second large investment in the Swedish gaming company this year.

Savvy was established as part of the Saudi Public Investment Fund (PIF) in 2021 to better position the Kingdom in the rapidly growing video game and eSports marketplace. This big move is just its latest.

The PIF recently acquired a 5% stake in Nintendo (valued at $3 billion), and owns stakes in Activision-Blizzard, Capcom, Take-Two Interactive, NCSOFT and Electronic Arts.

Now, as Embracer’s second largest shareholder, Savvy controls 8.1% of the company. Embracer, for its part, says it will use the investment capital to continue building its business by acquiring more studios and gaming IP.

Savvy Gaming Group CEO Brian Ward said, “The Embracer team has built a truly unique and leading ecosystem of entrepreneurs and creators at a scale which we believe will continue to generate enormous value for the games community in the coming years.”

Already in 2022, investment in the video game industry has reached record dollar values. It’s estimated the total deal flow will be worth $150 billion by years’ end.

With industry consolidation occurring at breakneck speeds, investors should be on the lookout for further acquisition targets by Savvy, and other major gaming companies, for that matter.