Savvy set to own about 10% of companies including Koei Tecmo, NCSoft, Nexon, and Square Enix.
Saudi Arabia’s Public Investment Fund is transferring about $12 billion worth of video game company shares to Savvy Games Group, one of its subsidiaries. The move includes stakes in big names like Nintendo Co. and Bandai Namco Holdings Inc.
The transfer will boost Savvy’s position in the gaming world. After the shares change hands, Savvy will own roughly 10% of several companies including Koei Tecmo Holdings Inc., NCSoft Corp., Nexon Co., and Square Enix Holdings Co. Bloomberg news reviewed company documents showing these holdings.
Savvy Games Group was set up in 2021. The goal was helping Saudi Arabia put money into things besides oil. With $38 billion available to spend, Savvy purchased Scopely Inc., the developer behind Monopoly Go. They also invested in Niantic, which created Pokemon Go, and bought into several esports organizations. Monopoly Go turned out to be a hit. The esports investments haven’t gone as well – there have been staff cuts at the company.
The fund is the largest investor in Electronic Arts Inc.’s $55 billion buyout, but Savvy won’t be involved in that transaction, according to someone who knows about the deal. The government fund already transferred its 11 million shares of Take-Two Interactive Software Inc. last month, that showed up in a late December regulatory filing. Savvy will keep using the PIF’s hands-off approach. They don’t plan to actively manage these investments, the person said.
Amar Batkhuu speaks for Savvy. He said they’ve been planning this transfer for a long time. “These transfers will move the stewardship of PIF’s games investments to Savvy, given Savvy is a leading games organization for the PIF and a core component of the National Gaming and Esports Strategy,” he explained. There aren’t any plans to change how they invest, he added.
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