According to The Verge, Sweden’s Embracer Group has faced an unexpected rejection of a $2 billion deal from cybersports company Savvy Games Group, owned by Saudi Arabia’s Sovereign Investment Fund (PIF). The move could have been key to further expanding Embracer’s gaming ambitions.
Embracer Group has been actively pursuing acquisitions in the gaming industry and has encountered an unexpected obstacle. In May, Savvy Games Group, a company run by Crown Prince Mohammed bin Salman and essentially Saudi Arabia’s investment vehicle in the gaming industry, backed out of a $2 billion deal. This was a stumbling block for Embracer, which had planned to expand its influence in the gaming industry.
Details of why the deal between Embracer Group and Savvy Games Group did not materialize are still unknown. However, it becomes clear that the main goal of this cooperation was to turn Savvy Games Group into one of the leading players in the global gaming arena. It should be noted that Savvy Games Group, acting as an instrument of the Saudi investment fund, has already shown itself as an active investor, investing in such well-known companies as Nintendo, Take-Two Interactive, and Capcom.