Yahoo Finance How Saudi Arabia’s wealth fund is taking over the world
Saudi Arabia's stakes in world-famous firms
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According to a Bloomberg report, Saudi Arabia aims to manage an incredible $1.1 trillion (£862bn) worth of assets by 2025 as it seeks to reduce its reliance on oil revenues.
The country's Public Investment Fund (PIF) has become a powerful tool in recent years, allowing the Middle East nation to snap up substantial stakes in everything from Silicon Valley corporations to global gaming giants. Last year, the PIF was the world's biggest investor, making 49 deals worth a total of $31.6 billion (£24.8bn) – an increase of 33% from 2022.
So how far and wide does the reach of PIF go? Read on to discover some of the familiar big-name companies Saudia Arabia has snapped up sizable stakes in. All dollar amounts in US dollars and historic currency conversions correct for the time.
Scopely: stake unknown
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PIF is committed to investing in the gaming sector and even launched its own division, Savvy Games Group, in early 2022.
In April 2023, Savvy Games Group entered into a deal to acquire mobile games studio Scopely for $4.9 billion (£4bn).
The landmark deal marked the sixth-largest acquisition in the video game sector's history, further demonstrating PIF's interest in making a name for itself within the industry.
Scopely: stake unknown
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Scopely has carved out an impressive reputation in the market, having produced popular mobile games like Star Trek Fleet Command and Marvel Strike Force.
The California-based company's growth has been further accelerated by its acquisition of Disney's FoxNext Games and Sony's GSN Games in 2020 and 2021 respectively.
Uber: 3.75% stake
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In 2016, PIF invested $3.5 billion (£2.8bn) in Uber in exchange for a 3.75% stake in the firm. As part of the deal, the fund's governor, Yasir Al Rumayyan, also took a seat on Uber's board.
At the time of the announcement, Al Rumayyan said in a statement: "We've seen first-hand how this company has improved urban mobility around the world and we're looking forward to being part of that progress."
Uber: 3.75% stake
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The investment marked PIF's first significant foray into Silicon Valley and, just days after the announcement, Saudi Arabia's Deputy Crown Prince Mohammed bin Salman was seen meeting with Facebook founder Mark Zuckerberg and Microsoft CEO Satya Nadella.
Uber has thrived in Saudi Arabia, and prior to the country's ban on female drivers being lifted in 2018, around 80% of its Saudi customer base was female. The fund's Uber stake is currently worth just over $2.3 billion (£1.8bn), according to a holdings list published by CNBC in 2023.
Activision Blizzard: 5% stake
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In early 2021, Saudi Arabia purchased 14.9 million shares in gaming giant Activision Blizzard, which is headquartered in California.
The acquisition had a market value of around $1.4 billion (£1bn) and marked yet another PIF investment in the gaming industry, one of the world's fastest-growing economic sectors.
According to the list published by CNBC, Activision Blizzard is PIF's second largest investment, with its 5% stake currently worth over $3.2 billion (£2.5bn).
Activision Blizzard: 5% stake
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Activision is behind a number of iconic global gaming franchises, including the hugely popular war series Call of Duty and the mobile game Candy Crush. Among its other properties are World of Warcraft, which was developed into a Hollywood movie in 2016, and the Diablo action role-playing game.
Microsoft’s protracted bid to purchase Activision Blizzard was plagued by accusations that the acquisition would give the Xbox maker an unfair monopoly over the gaming market. Following the rejection of the Federal Trade Commission’s (FTC) request to pause the deal, the purchase was concluded in October last year.
Take-Two Interactive: 7% stake
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In December 2020, PIF made a number of substantial acquisitions within the gaming industry, including the purchase of 3.9 million shares in Take-Two Interactive in a deal worth around $826 million (£651m). It has continued to bolster its stake in the company ever since.
According to CNBC, the fund's stake in Take-Two Interactive is its sixth-most valuable investment. The list gives the value of the stake as $1.362 billion (£1bn).
Take-Two Interactive: 7% stake
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Take-Two is best known for the Grand Theft Auto and Red Dead franchises and publishes its games through its labels Rockstar Games and 2K Games.
PIF's investments in the gaming sector show no signs of slowing, and the Savvy Games division has pledged to invest around $38 billion ($30bn) in the industry. In 2022, Reuters reported that $13 billion ($10bn) had been earmarked for the fund to acquire "a leading game publisher to become a strategic development partner".
Nintendo: 7.08% stake
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The Public Investment Fund made a significant investment in Nintendo when it purchased a 5% stake in the video game company for around $3 billion (£2.4bn).
The investment was first made public in May 2022, with Bloomberg reporting that Nintendo was "unaware" of who its newest investor was and had only learned of the acquisition through reports in the media.
In February 2023, PIF increased its stake in the Kyoto-based corporation to 7.08%, officially making it the company's largest external investor.
Nintendo: 7.08% stake
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PIF's savvy increased investment in Nintendo came at just the right time. The company was enjoying healthy sales of its Switch console, not to mention the hugely successful launch of its The Legend of Zelda: Tears of the Kingdom game.
With over 10 million units sold in three days, Tears of the Kingdom set the Guinness World Record for the fastest-selling Nintendo game ever.
Embracer Group: 8.1% stake
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In 2022, PIF invested $1 billion (£788m) in Embracer Group, the Sweden-based gaming giant.
In a statement released at the time, Embracer CEO Lars Wingefors defended the decision to "[accept] investment from an entity in a non-democratic country", saying the funds would help the company 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".
Embracer Group: 8.1% stake
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PIF's investment translated to an 8.1% stake in the games group, making the wealth fund the company's second-largest investor after CEO Wingefors himself.
Embracer's impressive roster includes the shooter game Borderlands, the action series Saints Row, and the Tomb Raider franchise.
Electronic Arts: 9% stake
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By the end of 2022, PIF held 16.01 million shares in Electronic Arts (EA). It went on to boost its stake in May last year, and now holds 24.81 million shares in the company.
The deal, said to be worth around $1.1 billion ($864m), gave Saudia Arabia a 9% stake in the company, which develops games for everything from PCs and mobiles to Xbox and PlayStation.
Electronic Arts: 9% stake
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The last few years have been hugely successful for EA, with the company reporting revenues worth over $7.4 billion (£5.7bn) for its 2023 financial year.
The gaming giant has made vast amounts of money from its wildly popular franchises, which include FIFA and The Sims, and its competitive online games such as Apex Legends.
Nexon: 10.23% stake
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In February 2022, shortly after announcing the launch of Savvy Games Group, PIF purchased a 5% stake in South Korea's Nexon for around $883 million (£696m).
The move made Saudia Arabia's sovereign wealth fund the fourth-largest shareholder of the Asian gaming giant. Not content with that, it was revealed in June last year that PIF was increasing its stake to 10.23%. This made the fund the company's largest shareholder, according to Game World Observer.
Nexon: 10.23% stake
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Nexon is a major player in the online games and MMORPG (online role-play video games) sector, with hit titles such as KartRider Rush and Maplestory earning the company hundreds of millions in annual revenue thanks to in-game purchases.
The initial investment from Saudi Arabia came just weeks after Nexon ploughed $400 million (£315m) of its own money into AGBO, the film production company co-founded by the Avengers: Endgame directors Anthony and Joe Russo.
Aston Martin: 20.5% stake
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According to the PIF's website, the automotive sector is another one of its key focus areas, so it's no surprise the fund has been pumping capital into Aston Martin.
In July 2022, it was revealed that PIF would become one of the largest shareholders of the luxury carmaker following a $100.2 million (£78m) investment.
According to Reuters, the British company announced that the Saudi Arabian fund's investment would see it take control of 16.7% of the firm, and secure two seats on the board.
Aston Martin: 20.5% stake
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At the time, news of PIF's backing caused Aston Martin shares to jump by 20%.
The company claimed that the investment round – which also included capital from Mercedes-Benz, as well as Aston Martin's executive chairman Lawrence Stroll – marked "the latest success in the evolution of Aston Martin, the restoration of the business and balance sheet we inherited, and the acceleration of our long-term growth potential".
Boosting its investment, the PIF increased its stake from 16.7% to 20.5% in 2023.
Lucid Motors: 60% stake
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Staying with cars, the PIF also owns around 60% of Lucid, the American electrical vehicle (EV) company and Tesla rival. Its stake in the EV maker is worth around $9 billion (£7bn).
With Lucid officially PIF's most valuable investment according to CNBC's list, rumours even swirled at the start of 2023 that the Saudi government might be planning to purchase the company outright.
Lucid Motors: 60% stake
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In April 2022, it was announced that the Saudi government had agreed to purchase up to 100,000 electric vehicles from Lucid over the next decade.
Saudi Arabia has made strides in recent years to follow through on its ambitious plan to cut its reliance on oil revenues, so its investment in electric cars makes sense.
In a statement at the time, Lucid CEO Peter Rawlinson said: "We are delighted to be supporting Saudi Arabia in achieving its sustainability goals and net zero ambitions."
Newcastle United FC: 80% stake
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Having initially been agreed in April 2020, Saudi Arabia's $385 million (£303m) takeover of the English football team Newcastle United was finally completed in October 2021 after an 18-month deadlock.
The deal saw PIF acquire an 80% majority stake in the team, with the remaining 20% split equally between private equity firm Reuben Brothers and businesswoman Amanda Staveley.
Newcastle United FC: 80% stake
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The team, which hasn't won any major competitions since 1955, achieved a top four finish in the Premier League table in the first full season following the takeover, which meant a lucrative spot in the UEFA Champions League.
However, the takeover hasn't been celebrated by everyone, with organisations such as Amnesty International condemning the deal due to Saudi Arabia's alleged human rights abuses.
LIV Golf: 93%
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New golf tour LIV Golf secured $2 billion (£1.6bn) of funding from Saudi Arabia’s Public Investment Fund in 2022, which led to the newcomer sharing its plans to hold 10 tournaments throughout last year, with 14 more planned for both 2024 and 2025.
The golf tour has since been embroiled in controversy, with many of its critics accusing Saudi Arabia of "sportswashing" in a bid to cover up the nation's less-than-favourable human rights record.
LIV Golf: 93%
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The controversy deepened in June last year when the golfing world was left stunned by the announcement of a "merger" between LIV Golf and its rival, PGA Tour.
The divisive agreement, which prompted an investigation by US Senator Richard Blumenthal, would combine the golf-related commercial businesses and rights of LIV Golf with the PGA Tour and DP World Tour.
A CNBC report notes that "PIF is prepared to invest billions of new capital into the new entity".
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