Saudi Arabia’s Savvy Gaming Group invests $1 billion in Swedish game company Embracer Group

According to MarketWatch, Saudi Arabia’s Savvy Gaming Group has invested $1 billion in Swedish game company Embracer Group.

With the directed share issue of almost 99.9 million B shares at a subscription price of SEK 103.47 per share, SGG will hold close to 8.1% of the shares and 5.4% of the votes in Embracer.

“Savvy Gaming Group’s investment of $1B enables us to continue executing our strategy proactively from a position of strength across the global gaming industry. Over the past few years, Saudi-based entities have become one of the most significant investors in the global gaming market, and the games market in MENA is one of the world’s fastest growing, with $5.7B in 2021 revenues and more active gamers than either the US or Western Europe. The largest country in this market, by far, is Saudi Arabia, and having visited Saudi Arabia, I have seen the gaming community and the opportunities firsthand,” said Lars Wingefors, founder and group CEO at Embracer Group.

“Our relationship with Savvy Gaming Group will enable us to set up a regional hub in Saudi Arabia, from which we will be able to make investments across the MENA region, either organically, via partnerships, joint ventures, or via acquisitions of companies led by strong entrepreneurs.”

This announcement comes five weeks after Square Enix announced its agreement to sell game studios and various intellectual properties to Embracer Group for $300 million USD.

[Sources]: Embracer Group: Embracer Group to carry out a directed share issue of B shares raising proceeds of approximately SEK 10.3 billion – [Archive]. MarketWatch: Embracer To Raise $1 Bln Via Share Issue To Saudi Arabia’s Savvy Gaming Group – [Archive].