Saudi stake in EA, Take-Two grows as it pours money into gaming

Numbers:

• The country's sovereign wealth fund increased its stake in EA from 5.1% to 5.8% with the acquisition of 2 million more shares as of the end of 2022, according to one new filing.
• Its stake in Grand Theft Auto maker Take-Two grew from 5.3% to 6.8% by the end of last year, after it obtained nearly 3 million more shares.
• The country's Public Investment Fund has also reportedly increased its stake in Nintendo from 5.0% to 7.1%.

Esports boosters: The Saudi government-funded Savvy Gaming Group announced today that it is investing $265 million into Chinese esports giant VSPO.

• Savvy's first public gaming investments, in January 2022, involved the purchase of two major esports organizations for $1.5 billion.
• Aside from Savvy's moves, esports investment has cooled globally.

The big picture: The official goals for Saudi Arabia's investment in gaming include diversification of the kingdom's economy and supporting a younger population in the region.

• But the involvement of Saudi Crown Prince Mohammed bin Salman, who chairs the Savvy group, has elicited questions about the investment as a means of reputation washing, given the country's human rights record.

What's next: Savvy has committed to investing $38 billion into gaming and has earmarked $13 billion to acquire a major game publisher.

Go deeper

• Interview: New Saudi gaming company is well-funded and controversial
• Saudi Arabia to invest $38 billion in gaming

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