Saudi PIF acquires $3.3bn stake in US video-game makers

RIYADH: The Riyadh-based Public Investment Fund (PIF) acquired more than $3 billion worth of stock in three US video-game makers during the fourth quarter (Q4) of last year, according to a regulatory filing.

Information submitted on Tuesday to the US Securities and Exchange Commission (SEC) revealed that the Saudi sovereign wealth fund investments included Activision Blizzard Inc., Electronic Arts Inc., and Take-Two Interactive Software Inc., said Al Sharq Business.

The PIF acquired 15 million Activision shares with a market value of almost $1.39 billion, representing 3.5 percent of the company’s total shares. The fund’s other purchases included 7.42 million Electronic Arts shares, and 3.97 million Take-Two shares worth around $1 billion and $825.5 million, representing 2.6 percent and 3.5 percent of the companies’ total issued shares, respectively.

According to combined data on investments in the e-gaming sector, the three shares were valued at approximately $3.3 billion at the end of December. MultiPlan Corp. was the PIF’s fourth new investment in Q4, with it acquiring a 7.7 percent stake in the company’s shares valued at $409.5 million for 51.3 million shares.

The total value of the PIF’s 13F (a list of managed equity assets reported to the SEC) holdings was $12.77 billion as of Dec. 31, up from $7.05 billion on Sept. 30, an increase of 81 percent.

According to the PIF, Uber Technologies Inc. had maintained the largest share in the fund’s investment portfolio on the US stock market with the fund’s ownership stabilizing at 72.8 million shares valued at $3.71 billion, representing 29 percent of its total investment value in the US market.

The PIF kept its stake in the Utilities Sector Fund with an investment value of $2.07 billion while its equity ownership of Carnival Corp. had stabilized at 50.8 million shares, valued at $1.1 billion, by the end of Q4.

The next phase of Vision 2030, unveiled by Crown Prince Mohammed bin Salman during a speech on Jan. 24 outlining the PIF’s strategy for the next five years, was a road map toward economic diversification.