In Recognition of Big Growth Potential
Saudi Arabia’s Public Investment Fund (PIF) has invested 1 trillion won in Nexon. Recently, a series of big deals has taken place in the global game industry, including Microsoft’s acquisition of Activision Blizzard. PIF has been expanding its investment in game companies and has recognized Nexon’s big growth potential.
The PIF is known to be run by Saudi Crown Prince Mohamed bin Salman. It purchased a 5.02 percent stake in Nexon for US$883 million (about 1.06 trillion won), according to Bloomberg on Feb. 6. As a result, the PIF has become Nexon’s fourth-largest shareholder.
The PIF also acquired a 5.05 percent stake in Japan’s Capcom for US$332 million (about 398 billion won). Capcom created “Monster Hunter” and “Street Fighter.” The PIF said it acquired a stake in Nexon for an investment purpose.
“We are aware of the PIF’s purchase of a stake in Nexen, but we have not received any contact from the PIF,” a Nexon official said. Industry watchers speculate that the PIF highly valued Nexon’s future releases and new businesses.
Nexon is preparing to release new games such as “Dungeon & Fighter Mobile Hit 2.” The Korean game publisher is also actively engaged in content business. It laid out a plan to invest 600 billion won in AGBO, a drama production company founded by the Russo brothers, who are famous for directing the movie "Avengers" series. It also invested 15 billion won in YB C&S, a joint venture between YG Entertainment and Naver. It has also officially announced its entry into metaverse and non-fungible token (NFT) businesses.
The PIF is recently ramping up investment in game companies and e-sports. It made strategic investments in Activision Blizzard, Electronic Arts (EA), and Take-Two Interactive, and acquired SNK, a developer of the Japanese game “The King of Fighters.” It also bought ESL Gaming, a global e-sports company, for about 1 trillion won.