The Saudi Arabia public investment fund has made a couple of headlines lately as it invests in Japanese game development companies, and Nintendo is the next. Due to contributions from a currently weak yen (the currency has decreased in value by about 12% since March) the PIF has moved in to become Nintendo’s fifth-largest shareholder.
As reported by Bloomberg, the PIF declared it as an investment decision – which may seem like common sense, but likely means they aren’t looking for a quick flip or to take some sort of controlling stake. They’re just here to grow the value of their money in a company they believe will continue to expand.
Bloomberg senior editor Gearoid Reidy pointed out on Twitter that many believe the Japanese video game industry is globally undervalued, making purchases like this sensible. As noted there, this joins the PIF’s similar investment in Capcom and Nexon. An analyst also believes that Saudi Arabia wishes to “beef up” its creative industries and these investments allow them to learn directly from the best.
While it’s unlikely a company the size of Nintendo is on the shelf for a buyout, you never know when someone is going to drop $69 billion on a company you really didn’t think was up for sale, eh Activision?
Written by Ben Barrett on behalf of GLHF.