According to Bloomberg, the country of Saudi Arabia now owns a 5.01% stake in Nintendo co., you may be wondering how is this possible, how a country can own a part of the Japanese company.
Let us explain…
Saudi Arabia's Public Investment Fund led by Crown Prince Mohammed bin Salma, made this purchase as a form of investment, according to a filing to Japan’s Finance Ministry. Making them Nintendos’s fifth-largest shareholder.
You should know that this is not the first time that the PIF invest in a Japanese games company as they acquired more than a 5% stake in Capcom alongside Nexon back in February.
This type of investment is not going to have any kind of effect regarding Nintendo or its games, actually, this is a strategy from Saudi Arabia that intends to learn from these gaming companies to create their own content industry.
A Crown Prince interested in… video games?
As mentioned before, Crown Prince Mohammed bin Salman is very focused on his strategy…
Last year he invested in Take-Two (Grand Theft Auto), Electronic Arts (FIFA) and Activision Blizzard (Call of Duty); while back in 2020, he purchased the third part of SNK (The King Of Fighters) becoming the majority owner.
The Saudi Arabia Public Investment Fund was created in the early 1970s with the aim of diversifying the regime's sources of wealth beyond oil and gas. These acquisitions have increased in the last two years in the wake of the stock market crash that many entertainment, leisure and tourism companies have experienced in the wake of the pandemic.
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