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Home Technology Gaming

The Year Of Gaming Investment Continues With Saudi Government Buying Stake In Capcom And Nexon – GameSpot

by NewsReporter
February 4, 2022
in Gaming
the-year-of-gaming-investment-continues-with-saudi-government-buying-stake-in-capcom-and-nexon-–-gamespot
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2022 has been a big year already with mergers, acquisitions, and funding in the video game space, and that continues today with news that Saudi Arabia’s wealth fund is investing in Capcom and Nexon. The kingdom’s Public Investment Fund (PIF) has announced it acquired 5% stakes in Capcom and Nexon, with its combined investments in both companies reaching $1 billion, according to Bloomberg.

This is just the latest gaming-related move from the PIF, which previously bought almost 40 million shares of Activision Blizzard in 2020. Activision Blizzard’s stock price dropped significantly in the past year in the wake of reports about the company’s workplace culture, making it look like a less-than-excellent investment. But the PIF might be primed for a payday with the proposed Microsoft buyout of Activision Blizzard given Microsoft is paying a 45% premium on the company’s shares.

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The PIF, which is run by Crown Prince Mohammed bin Salman, also own stakes in Take-Two and Electronic Arts. And Nexon itself has been making investments, recently putting $400 million into AGBO, the movie and TV studio run by Avengers directors Joe and Anthony Russo.

The PIF is looking to grow the size of its portfolio to more than $1.07 trillion by the end of 2025, according to Markets Insider. The oil-rich kingdom is trying to create a new image for itself amid claims of its “addiction” to oil. Diversifying its portfolio for the wealth fund is seemingly a step toward doing that.

Outside of the PIF’s new investments, 2022 has already seen Microsoft propose to buy Activision Blizzard for $68.7 billion and Sony look to buy Bungie for $3.6 billion. Even more deals are expected this year, with a report saying video game buyouts and dealmaking could reach $150 billion in 2022.

Got a news tip or want to contact us directly? Email news@gamespot.com

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