Saudi Arabia’s Public Investment Fund became the largest outside shareholder of Nintendo Co. on Friday, in the latest move by the Gulf state to lower its reliance on oil.
The sovereign wealth fund now owns 8.3% of the Kyoto-based games company, according to a filing, building up a position that stood just above 6% at the start of the year. That puts PIF ahead of Japan’s Government Pension Investment Fund and behind only Nintendo’s own holding, according to data compiled by Bloomberg.
Under Crown Prince Mohammed bin Salman, Saudi Arabia is making a concerted push to break into the games and esports industry. Most notably, it set up Savvy Games Group under the PIF umbrella with a $38 billion budget and longtime industry veterans in charge. Savvy this week revealed its first foray into China’s games sector with a $260 million investment in a Tencent Holdings Ltd.-backed competitive gaming organizer.
The latest Nintendo stake purchase was made for investment purposes, the filing said. A Nintendo representative said the company doesn’t comment on specific shareholders and PIF didn’t immediately respond to a request for comment.
“It’s tough to bet against PIF due to its size in the market,” UBS analyst Kenji Fukuyama said. “The fund may underpin Nintendo shares if it continues to increase its stake.”
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