PIF will take over as VSPO’s biggest equity holding.
The Chinese e-sports organisation VSPO now has a $265 million interest owned by Saudi Arabia’s national wealth fund.
After investments made by the kingdom in Nintendo Co. and Embracer Group last year, this move represents Saudi Arabia’s most recent foray into the gaming industry, according to Reuters.
The Public Investment Fund (PIF), which is supported by Tencent Holdings Limited, will become the largest stock holder in VSPO through its gaming division Smart Games Group.
The goal of this action is to make Saudi Arabia “the ideal worldwide hub for the gaming and esports sector by 2030,” according to Saudi Crown Prince Mohammed bin Salman. He also unveiled a $38 billion plan for Savvy Gaming Group last year.
Leading mobile e-sports company VSPO has already applied for listings in the US and Hong Kong.
According to the business, PIF’s funding will help them grow mobile esports, especially in Saudi Arabia. Savvy Gaming Group claimed that the action will help diversify its holdings.
“This is a big deal for Savvy, and it solidifies our position in the crucial Asia market. Together with VSPO, we are eager to expand our regional reach, stated Brian Ward, chief executive officer of Savvy.
The COVID-19 pandemic has only fueled the growth of the booming global esports industry.
Saudi Arabia is seen as a profitable market for gaming businesses due to its sizable young population and high levels of disposable money. Industry insiders applaud the kingdom’s increased interest in the field.
The PIF’s investment in VSPO is a component of broader initiatives to diversify the economy of the kingdom and lessen its reliance on oil.
The fund has recently made a number of high-profile investments, including as purchasing a 40% interest in the Vision Fund of the SoftBank Group and investing in Lucid Motors, a maker of electric vehicles.