Embracer lets in Saudi Arabia as a major owner
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The dictatorship's money pays for 8.1 percent of the shares.
Embracer Group receives 10.3 billion new in their the account. The Swedish Karlstad-based gaming company has released 99.9 million new B shares, which it sold to the Saudi Arabian Savvy Gaming Group. Savvy is funded by the Public Investment Fund, a government fund where the country's controversial crown prince and leader Mohammed bin Salman sits on the board.
The deal gives Savvy 8.1 percent of the shares and 5.4 percent of the votes in Embracer. This makes the Saudi company one of the largest owners behind founder Lars Wingefors, who at the turn of the year held 24.2 percent of the company's shares and just over 43 percent of the votes.
Embracer CEO and founder Lars Wingefors:
"Our relationship with Savvy Gaming Group will enable us to set up a regional hub in Saudi Arabia, where we will be able to carry out investments in the MENA region, either organically, through partnerships, joint ventures or through the acquisition of companies led by strong contractors.
Savvy was formed at the beginning of the year and immediately hit the headlines by buying Dreamhack owner ESL for $13 billion. In May, it became clear that PIF had bought 5 percent of the Japanese gaming giant Nintendo .
Embracer emphasizes in the press release that it wants long-term investments in the company. Savvy invests in entering the gaming and esports community worldwide. But the company's ventures are controversial because the fund that finances the company is controlled by Crown Prince bin Salman, who has been accused, among other things, of ordering the murder of a prominent journalist in 2018. The country has also been criticized for a lack of human rights, both during the crown prince's rule and before.
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