Saudi's Savvy Games Group to Invest $265M in the Chinese Company VSPO

  • Publish date: Friday، 17 February 2023
Saudi's Savvy Games Group to Invest $265M in the Chinese Company VSPO

Savvy Games Group, funded by Saudi Arabia's sovereign wealth fund, will invest $265 million in Chinese esports organization VSPO as part of the country's most recent entry into the gaming industry.

According to VSPO, Savvy Games Group, a gaming unit, would acquire a stake in the Chinese firm and make Saudi Arabia's Public Investment Fund the single largest shareholder.

In September of last year, Saudi Crown Prince Mohammed bin Salman announced a $38 billion plan for Savvy Games Group with the goal of turning Saudi Arabia into "the ultimate global hub for the games and esports sector by 2030."

The kingdom is making investments in everything from the manufacturing of electric vehicles to travel and gambling in an effort to reduce its reliance on oil revenue.

eSports income worldwide increased to $1.3 billion in 2018 from $996 million in 2020, according to data gathered by Statista. By 2025, they are anticipated to reach $1.86 billion.

Savvy CEO Brian Ward said, “This is a significant transaction for Savvy, and gives us a major foothold in the important Asia region. We are looking forward to diversifying our geographic footprint alongside VSPO.”

By buying shares in the Swedish gaming group Embracer and the Japanese gaming company Nintendo Co last year, Saudi Arabia has also been increasing its gaming sector investments.

Follow us for more amazing beauty, fashion, and luxury content on Instagram and Facebook. Join us in our newsletter. Sign-up here.

Follow us on our Whatsapp channel for latest news