Saudi Sovereign Wealth Fund Is Betting On These 3 US Video-Game Stocks
Saudi Arabia’s sovereign wealth fund has invested more than $3 billion in shares of video-game companies, according to 13F filings made with the United States Securities and Exchange Commission.
What Happened: The Public Investment Fund, during the fourth quarter, purchased 14.9 million shares of Activision Blizzard, Inc (NASDAQ: ATVI).
The fund also stocked up on 7.4 million Electronic Arts Inc (NASDAQ: EA) shares and 3.9 million shares of Take-Two Interactive Software, Inc (NASDAQ: TTWO).
At the end of the year, the Activision shares were worth nearly $1.4 billion. The Electronic Arts and Take-Two shares were worth $1.1 billion and $826 million respectively.
See Also: 4 Take-Two Analysts On Q3 Results, Long-Term Story, Strength In 'Grand Theft Auto V,' 'NBA 2K'
Why It Matters: PIF is controlled by the Kingdom’s Crown Prince Mohammed bin Salman who told Bloomberg in 2016 that he was part of a generation that grew up playing video games.
The investment fund is reportedly a part of the prince’s plan to move Saudi away from its reliance on oil.
The PIF said in January that it has plans to grow its assets under management to $1.07 trillion by the end of 2025 and contribute $320 billion to Saudi Arabia’s non-oil GDP.
The fund’s other investments have included Uber Technologies Inc (NYSE: UBER), which faced boycott calls in 2019 after the murder of the journalist Jamal Khashoggi in the Saudi consulate in Istanbul.
Price Action: On Tuesday, Activision shares closed 0.82% lower at $102.96. Electronic Arts shares ended the day 1.33% lower at $145.78, and Take-Two shares closed 2.04% lower at $195.79.
Read Next: Stock Wars: Activision Blizzard Vs. Electronic Arts Vs. Take-Two
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