Wednesday 18 May 2022

#SaudiArabia’s PIF Adds to Games Push With 5% Nintendo Stake - Bloomberg

Saudi Arabia’s PIF Adds to Games Push With 5% Nintendo Stake - Bloomberg

Saudi Arabia’s Public Investment Fund took a 5.01% stake in Nintendo Co., its third investment in a Japanese games company as the industry consolidates.

The PIF, as the $500 billion fund is known, said the Nintendo purchase was made for investment purposes, according to a filing to Japan’s Finance Ministry. That is the same reason it has given with previous investments and the holding is set to make the Saudi fund Nintendo’s fifth-largest shareholder, according to data compiled by Bloomberg.

The PIF has been building stakes in video game makers and e-sports firms over the past two years, turning to the Japanese market just as a weaker yen has made investments more affordable. The Saudi fund disclosed stakes of more than 5% in two Japan-listed gaming firms this year: Capcom Co., the maker of the Street Fighter and Resident Evil franchises, and online games provider Nexon Co.

“Saudi Arabia has been beefing up efforts to create its own content industry, and this series of investments in Japanese game companies is likely a way for them to learn from Japan,” said Hideki Yasuda, a senior analyst at Toyo Securities.

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