As explained in the press release, the business was conducted through Savvy Gaming Group, a subsidiary owned by the Saudi Arabian Public Investment Fund, which at the time had acquired ESL (for $1 billion) and FACEIT (for $500 million) companies Combine the two into one large esports entity. Through Savvy Gaming Group, the Saudi sovereign wealth fund now owns 8 percent of Embracer, which has just achieved an annual turnover of 1.6 billion euros but has yet to find a financial balance. CEO Lars Wingefors told us in his statement about his sudden enthusiasm for Saudi Arabia, of course its generous investors, and the commercial potential of the ANMO region (North Africa and the Middle East).
“Over the past few years, the Saudi Arabia-based entity has become one of the largest investors in the global gaming market. The gaming market in the ANMO region is one of the fastest growing in the world, with revenue of $5.7 billion in 2021 and more active gamers than the United States or Western Europe. By far the biggest country in this market is Saudi Arabia, and after visiting this country, I saw firsthand the gaming community and the opportunities it offers.Our relationship with Savvy Gaming Group will allow us to establish a regional hub in Saudi Arabia where we can invest organically throughout the ANMO region, whether through partnerships, joint ventures or business acquisitions led by strong entrepreneurs“, Lars Wingefors explained, he didn’t at least sing the praises of Prince Mohammed bin Salman.
The action will net Embracer 10.3 billion Swedish kronor ($1 billion). Embracer sold at SEK 103.47 per share to realize a 15% premium to the closing price of SEK 89.97 on June 7, 2022. “The company intends to use the net proceeds from the share offering to strengthen its financial position and enable it to pursue its acquisition strategy by complementing its existing business with new game publishers, game development or other assets“, the press release ends.
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