Saudi’s PIF buys 5% of Nintendo’s shares

The deal makes the fund 5th largest investor in the video game company
Saudi’s PIF buys 5% of Nintendo’s shares

The Saudi Public Investment Fund (PIF) announced its acquisition of a 5.01 percent stake in the Japanese video game company “Nintendo”, according to a disclosure submitted to the Japanese Ministry of Finance, consolidating its investment in the country’s gaming industry.

The disclosure file shows that the stake was purchased with the aim of investing, making the fund the fifth largest shareholder in the Japanese company, according to Bloomberg data.

The fund, worth about $500 billion, has been buying stakes in video game and esports makers for the past two years.

It disclosed more than 5% stakes in two Japanese-listed gaming companies: Capcom, maker of Street Fighter and Resident Evil, and also provider of online games Nixon.

It also previously invested in Activision, which Microsoft sought to acquire in a historic deal of nearly $69 billion.

Nintendo develops video games and consoles. It was founded in 1889 by craftsman Fusajiro Yamauchi, and originally produced handmade hanafuda playing cards.

The Kyoto-based company reported lackluster financial results last week as the creator of the Super Mario game struggles to revitalize its five-year-old ‘Switch’ and manage a global shortage of chips. The company expected to achieve full-year operating income less than analysts’ estimates, and said it expects to sell 21 million Switch devices this year, down from 21.7 million analysts’ estimates, according to “Bloomberg”.