Skip to content Skip to Search
Skip navigation

Swedish gaming group defends Saudi deal

Tomb Raider Live Little Lion Entertainment
Tomb Raider immersive experience in London. Embracer is buying the iconic games franchise
  • Embracer CEO: ‘Only a handful of players’ can provide capital needed
  • PIF unit Savvy Gaming Group acquires 8% of gaming group
  • Swedish company has more than 12,000 employees in 40 countries

The chief executive of Swedish gaming conglomerate Embracer Group has defended his company’s decision to sell an eight percent stake to Saudi Arabia’s sovereign wealth fund.

Embracer announced on Thursday that it was issuing 99.9 million shares at a price of 103.47 Swedish krona ($10.19) to Savvy Gaming Group, a unit owned by the Saudi Public Investment Fund (PIF). The deal will help the gaming company raise around $1.05 billion.

“I have been asked over the past few days why we are accepting investment from an entity in a non-democratic country,” said Lars Wingefors, Embracer’s co-founder and CEO, in a statement.

“We need to look ourselves in the mirror, we are a public company and already have many hundreds of institutions from all parts of the world as shareholders,” Wingefors said, adding that there were “only a handful of players in the world” capable of providing the long-term capital that the company requires.

He described the $600 billion PIF as “one of the world’s largest investors, [with] sizeable ownership in many of our larger gaming peers”.

Its Savvy unit, he added, “has ambitions within gaming that are genuine in supporting the global ecosystem for our industry that are consistent with and important to the values and culture of our industry”.

Embracer, which has more than 12,000 employees in some 40 countries, manages a portfolio of video game studios and brands. In early May, it agreed to take over a package of iconic franchises including Tomb Raider.

PIF has been expanding into the gaming sector in recent months. In May it acquired a five percent stake in Nintendo, the Japanese company behind Super Mario Bros, The Legend of Zelda and Pokémon.

Latest articles

Adnoc sought advice from investment banks on buying a significant stake in BP, a media report said

UAE’s Adnoc explored acquiring BP

Abu Dhabi National Oil Company (Adnoc) explored the possibility of acquiring British oil major BP but abandoned the plan as it did not fit into its strategic growth objectives, a media report said.  The talks did not advance beyond the initial stages, Reuters reported, citing informed sources.  The UAE state oil company also sought advice […]

Nature, Undersea cables account for as much as 90 percent of Europe-Asia telecommunications, Water

Iraq and Kuwait team up for European telecom corridor

Iraq’s Informatics and Telecommunication Public Company, a division of the Ministry of Communications, has signed an agreement with Kuwait’s Zajil Telecom to create a telecommunications corridor from the Gulf region to Europe, transiting through Iraq and Turkey. The new route will pass through Iraqi sea and land ports. Iraq’s minister of communications Hayam Al-Yasiri said […]

An artist's impression of part of the Diriyah Square development

Diriyah Square planned for historic Riyadh district

A public space featuring 400 retail outlets and 100 restaurants and cafes is planned for the historic Riyadh district of Diriyah. Diriyah Square will be announced next week at the World Retail Congress in Paris and aims to attract a combination of international retail brands and local artisans.  Diriyah Gate Development Authority group CEO Jerry […]

Turkish crude steel output rose 25% year on year to 3.2 million tonnes in January

Turkish steel in the black but EU rules rankle

Turkey’s steel industry has rebounded strongly from a weak 2023, despite facing new emissions standards and competition for important markets.  Crude steel output rose 25 percent year on year to 3.2 million tonnes in January, with domestic consumption of finished steel reaching 3.5 million tonnes, a 20 percent increase.  Exports were also up, increasing 23 […]