As per the sources, we came to know that Saudi Arabia now owns 5 percent of Nintendo’s stock. This might be one of the massive fund moves to date. The gaming industry has experienced a time of disruption, with an increasing number of big takeovers and prominent investments, ranging from Tencent’s continued expansion, Sony’s acquisition of Bungie, and Microsoft’s acquisition of Activision Blizzard at a comparable stage.
Furthermore, with respect to monetary manipulation, Nintendo has also made some important moves. It just completed another large share repurchase and will perform a 10-for-1 stock split later this year; the latter is a move often done by corporations in good financial standing. Now the focus shifts to the ‘Public Investment Fund’ (PIF), a government-run sovereign wealth fund in Saudi Arabia. According to Bloomberg, PIF has purchased a 5.01 percent share in Nintendo, citing the move as an investment. With that stake, it is Nintendo’s sixth largest stakeholder.
According to Bloomberg, a Nintendo representative said the business learned of the investment from press reports and that the company would not comment on individual shareholders. The PIF of Saudi Arabia has been particularly active this year, spending nearly $1 billion on interests in two enterprises in February. The majority of the money was spent on a 5% stake in Nexon, a Korean company known for its highly popular online games.
The purchase of 5% of Capcom, which was worth roughly $332 million at the time, was the more notable investment from a Nintendo / console standpoint. In other news, the Mohammed bin Salman Foundation’s Electronic Gaming Development Business now owns almost 96 percent of legendary gaming company SNK and has started investing in the company in 2020.
From the sources, what we understand is that the Public Investment Fund of Saudi Arabia also has high-profile investments in Activision Blizzard, EA, and Take-Two, and has made news in sports for its purchase of a majority position in Newcastle United FC in England, as well as its funding of upcoming LIV Golf events. Saudi Arabia’s PIF investments have received interest and controversy in recent years due to concerns such as the country’s human rights record, with organizations such as Amnesty International keeping watch of the country’s actions.
