In a surprising move, Saudi Arabia‘s sovereign wealth fund has increased its stake in Nintendo, the Japanese video game company. The Public Investment Fund (PIF) of Saudi Arabia recently disclosed in a regulatory filing that it has acquired an additional 3.3 million shares of Nintendo, raising its ownership stake to 6.3 million shares, or approximately 0.7% of the company’s outstanding stock.
This is not the first time that PIF has increased its investment in Nintendo. In 2018, the fund bought 4.9 million shares of the video game maker, which was worth about $1 billion at the time. This made PIF one of the largest shareholders in Nintendo. The fund has now added to its stake, indicating its continued confidence in the company’s future prospects.
Nintendo is one of the world’s leading video game makers and is known for creating iconic franchises such as Mario, Zelda, and Pokemon. The company has experienced significant growth in recent years due to the popularity of its Switch console and the success of its game titles. In 2020, Nintendo reported a net profit of $3.3 billion, up 33% from the previous year, driven by strong demand for its products during the COVID-19 pandemic.
The increased investment by PIF is likely to be seen as a vote of confidence in Nintendo’s continued growth and success in the video game industry. PIF is known for its long-term investment strategy and has made several high-profile investments in technology companies in recent years, including a $3.5 billion stake in Uber and a $1.5 billion investment in electric car maker Lucid Motors.
The move also highlights the increasing interest of Middle Eastern investors in technology and gaming companies. The region is home to a young and tech-savvy population, and governments are increasingly looking to diversify their economies beyond oil and gas. Saudi Arabia, in particular, has launched a number of ambitious initiatives aimed at attracting foreign investment and developing its technology sector.
The investment by PIF may also have wider implications for the video game industry as a whole. The COVID-19 pandemic has accelerated the growth of the gaming industry as more people stay at home and seek entertainment options. The increased investment by PIF in Nintendo may signal a growing recognition of the potential of the video game industry as a long-term investment opportunity.
In conclusion, Saudi Arabia’s sovereign wealth fund has increased its stake in Nintendo, indicating its confidence in the company’s future growth prospects. This investment is likely to be seen as a positive development for both Nintendo and the wider video game industry, as it highlights the increasing interest of investors in the sector. It will be interesting to see how this investment plays out in the coming years, and whether other Middle Eastern investors follow suit.