Chinese esports company VSPO, which is supported by Tencent Holdings, announced that Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) has acquired a $265 million stake in the company, as the kingdom advances its efforts in the gaming industry.
Through its gaming unit Savvy Games Group, the Saudi Arabia’s PIF will acquire a stake in VSPO and become the Chinese company’s primary shareholder.
Last year, Saudi Arabia expanded its gaming industry investments by purchasing stakes in Japan’s Nintendo Co and Swedish gaming group Embracer.
In September of that year, Saudi Crown Prince Mohammed bin Salman unveiled a $38 billion plan for Savvy Games Group, which aims to establish Saudi Arabia as the “preeminent global hub for the games and esports sector” by 2030.
VSPO, which had previously sought listings in the US and Hong Kong, stated that Savvy’s investment would facilitate the growth of mobile esports, with an emphasis on Saudi Arabia.
Savvy stated that the investment would aid in its diversification efforts.
The firm’s CEO Brian Ward said that this move is significant as it “gives us a major foothold in the important Asia region. We are looking forward to diversifying our geographic footprint alongside VSPO.”
