Saudi Arabia has elevated its stake in Digital Arts by way of its Public Funding Fund (PIF), stories Gamesindustry.biz.
First noticed by Looking for Alpha, PIF held 16.01 million shares of EA previous to This fall 2022, however has since upped its stake within the firm to 24.81 million shares as of the top of Q1 2023 – a rise of 55%.
Saudi Arabia has been investing in sport builders worldwide as a part of its long-term financial technique because the nation diversifies from oil. As a part of this technique, PIF subsidiary Savvy Video games Group acquired a $1 billion stake in Swedish conglomerate Embracer Group final yr, and purchased American sport maker Scopely, answerable for hits akin to Marvel Strike Drive and Stumble Guys, earlier this yr.
The tactic behind the investments
Though Saudi Arabia has lengthy been on the coronary heart of the mobile-first MENA area, the nation has been making investments in an in depth portfolio video games corporations, together with console producer Nintendo. Whereas EA has seen success on cell, this success has been tampered just lately by a number of excessive profile closures, akin to Apex Legends Cellular and Battlefield Cellular. The corporate additionally just lately severed its cope with FIFA, elevating some doubts as to the rebranded collection’ ongoing success. Notably, cell development for the corporate slowed to 1% in Q1, in comparison with 48% in August 2022.
Regardless of this, the corporate stays bullish about its prospects, particularly on console, with CEO Andrew Wilson just lately commenting on Microsoft’s makes an attempt to amass Activision Blizzard that, “We proceed to be Microsoft’s greatest accomplice – I believe we’re the primary writer on their platform – so whether or not that deal goes by way of or not shouldn’t be actually materials to us broadly.”
With this in thoughts, whereas Saudi Arabia might effectively proceed to have faith in EA’s efficiency on cell units, evidently it’s hoping to capitalise on EA’s success on PC and console with this specific funding, to be able to diversify its gaming income streams.
We listed Digital Arts as one of many high 50 cell sport makers of 2022.
