Saudi Arabia’s Savvy Gaming Group backs Embracer with $1 billion investment

Savvy Gaming Group, an investment group from Saudi Arabia, has invested heavily in Embracer Group. For $1 billion from Saudi Arabia’s Public Investment Fund (PIF), Embracer distributed 99.9 million B shares. This award represents an 8.1% stake in the Swedish video games and media holding company.

“Savvy Gaming Group is committed to investing heavily in the gaming and esports industry and to materially empowering the global gaming community,” said Brian Ward, CEO of Savvy Gaming Group. “This investment in Embracer Group is a starting point for a long-term commitment to the company.”

The first half of 2022 was interesting for Saudi Arabia’s PIF. Earlier this year, Savvy Gaming Group bought esports companies ESL and Face It in a $1.5 billion deal. The PIF also acquired over 5% stakes in Capcom and Nexon for reportedly more than $1 billion a share.

“The $1 billion investment by Savvy Gaming Group allows us to proactively continue our strategy from a position of strength in the global gaming industry,” Embracer Group CEO Lars Wingefors said in a statement. “In recent years, Saudi Arabia-based companies have emerged as one of the most significant investors in the global gaming market, and the gaming market in MENA is one of the fastest growing in the world, with US$5.7 billion in annual revenues Year 2021 and more active players than either the US or Western Europe.”

Embracer Group has been on a buying spree in recent years, acquiring a number of large studios. Acquired include studios such as Gearbox Entertainment, Coffee Stain, THQ Nordic and more. With this investment, the media giant can afford to grow a little further.

Embracer now owns 120 game studios and has 230 games in development.