Saudi Arabia’s Public Investment Fund said it is reprioritizing various foreign investments, including technology, automobiles and other value-added businesses.
A day after it was announced that the fund was among those interested in buying a minority stake worth about $1 billion in DAZN, a sports event streaming platform backed by billionaire Len Blavatnik. , a Saudi investment group surprised on Tuesday by reducing its holdings in Japanese stocks. Game company Nintendo.
The Japanese company, which specializes in developing, manufacturing and selling video game hardware and software, confirmed in a statement that the Saudi investment fund had reduced its stake “from 8.58% to 7.54%.” Funds sold about 17.3 million shares of the company, according to Bloomberg estimates.
In February last year, the Saudi fund increased its stake from 7.08% to 8.6%, making it Nintendo’s largest shareholder.
Saudi authorities are seeking to make the kingdom a major player in the electronic gaming industry and diversify the country’s heavily oil-dependent economy. In this regard, they are investing $38 billion to become the hub of the video game industry.
Saudi authorities seek to make Saudi Arabia a major player in the electronic gaming industry – Photo/File
The growing interest in the gaming sector culminated in the creation in 2022 of Saudi sovereign wealth fund Savi Group, whose board of directors is chaired by Crown Prince Mohammed bin Salman. In September of the same year, it was announced that the company had committed to investing $38 billion in electronic gaming by 2030.
Nintendo shares rose 3.9% to a one-week high on Monday after a senior executive at a sovereign wealth fund announced a decision to increase its stake in the Japanese gaming company. The agency has also invested billions in other companies in the industry, including Tencent, Activision, and Cocoa Entertainment.
Crown Prince Mohammed bin Salman of Saudi Arabia – AFP/Sergei Savostyanov
The potential deal with the DAZN platform is expected to give the fund greater influence in European football, as DAZN is responsible for broadcasting top leagues in Italy, Spain, Germany and France. The fund is looking to acquire about 10% of the London-based platform.
The fund is already part of an alliance that owns Newcastle United in the English Premier League, as well as other Saudi Professional League clubs, including Al Nasr club, where Cristiano Ronaldo plays.
Portugal forward Cristiano Ronaldo poses with the top scorer’s trophy after the soccer semi-final match of the Arab Club Champions Cup 2023 – AFP/Abdullah MaHDI
DAZN, which offers a variety of sports content through its streaming platform, will be the first broadcast platform to attract potential investment from Saudi funds, which have poured billions of dollars into other sports such as Formula 1 and golf in recent years.
DAZN’s latest financial results show its revenue rose 41% to $2.1 billion in 2022, due to higher subscription prices and the acquisition of the rights to broadcast the German and Italian Premier Leagues on its platform. However, the company also posted an operating loss of $1.06 billion due to higher rights costs.
