According to the news story of Kotaku, the Public Investment Fund (PIF) of Saudi Arabia, a near-endless pool of cash entrusted with diversifying the country's economy, has purchased a 5.01% share in Nintendo.
The information was revealed in a filing with Japan's Finance Ministry. It follows similar acquisitions in Capcom, EA, Take-Two, and Activision made last year, as well as nearly total ownership of SNK.
Saudi Arabia Now Partly Owns Nintendo
Bloomberg reported that the PIF's investment in Nintendo Co. is its third investment in a Japanese games company as the industry consolidates.
Referring to the data collated by the publication, the Saudi fund will become Nintendo's fifth-largest shareholder for the same reason it has claimed for past investments. According to a filing to Japan's Finance Ministry, the PIF, as the $500 billion fund is known, said the Nintendo acquisition was done for investment purposes.
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The PIF Is Gaining Interest in Video Game Companies
Over the last two years, the PIF has been amassing interests in video game developers and e-sports companies, turning to the Japanese market as the yen has weakened, making investments cheaper. This year, the Saudi fund declared holdings of more than 5% in two Japanese gaming companies: Capcom Co., the creator of the Street Fighter and Resident Evil franchises, and Nexon Co., a producer of online games.
Since Microsoft Corp. announced the $69 billion purchase of Activision Blizzard Inc., Japan's gaming companies have been the focus of speculation amid a broader trend of consolidation in the sector. The PIF had purchased around 37.9 million Activision shares and was losing money on the deal until Microsoft intervened, as per the news report of Bloomberg.
Other Investments of the PIF
The entertainment industry in the PIF's sites is not limited to video games. As per the report of Kotaku, in recent years, Saudi wealth has poured into Hollywood, and the Crown Prince has made sporting teams and tournaments a primary priority. Despite major protests against the state's human rights record, a large-scale purchase of Premier League side Newcastle was completed last year, and PIF funds have been spent on everything from horse racing to Formula 1.
On the other hand, World Finance News reported that by the end of the first quarter of 2022, the PIF had cut its holdings in US equities by 22% to $43.6 billion, down from $55.9 billion a quarter earlier.
The PIF reduced its stake in three companies: Visa Inc., Plug Power, and Walmart, citing a filing with the US Securities and Exchange Commission.
Meanwhile, Take-Two Interactive, PayPal, Alibaba, and Farfetch Ltd were among the companies in which it raised its stake.
While the sovereign fund sold its share in Just Eat Takeaway.com, it made five new investments in Carnival, Babylon, SIGNA Sports United NV, Meta Platforms, and Sea Ltd.
