Saudi's PIF-owned unit acquires US$265 million stake in Chinese gaming company VSPO

Saudi Arabia's sovereign wealth fund has purchased a US$265 million investment in the Chinese esports organisation VSPO, which is supported by Tencent Holdings Inc. The kingdom is continuing its push into the gaming industry.

Saudi Arabia's Public Investment Fund will acquire a stake in VSPO through its gaming division Smart Games Group, making it the Chinese firm's sole largest shareholder, according to VSPO.

By purchasing shares in the Swedish gaming company Embracer and the Japanese gaming company Nintendo Co. last year, Saudi Arabia has been increasing its gaming sector investments.

Saudi Crown Prince Mohammed bin Salman in September last year laid out a US$38 billion strategy for Savvy Games Group, with the aim of making Saudi "the ultimate global hub for the games and esports sector by 2030".

The expansion of mobile esports will be accelerated by Savvy's investment, according to VSPO, which has previously sought listings in the US and Hong Kong. Savvy predicted that the investment would broaden its base.

"This is a significant transaction for Savvy, and gives us a major foothold in the important Asia region. We are looking forward to diversifying our geographic footprint alongside VSPO," Savvy Chief Executive Officer Brian Ward said.

Chinese global technology and entertainment giant Tencent Holdings Ltd. is a holding corporation with its main office in Shenzhen. Based on revenue, it is among the top multimedia corporations in the world. In terms of investments, Tencent Games, a part of Tencent Interactive Entertainment Group (IEG) that focuses on publishing games, is also the largest video game firm in the world.