Nintendo Shares Surge as Saudi Fund Considers Increasing Stake

Nintendo Co.’s shares rose by as much as 3.9% after reports surfaced that Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), is considering increasing its investment in Japanese gaming companies, including Nintendo.

This development comes as part of Saudi Arabia’s broader strategy to expand its influence in the global gaming industry.

Prince Faisal bin Bandar, vice chairman of Savvy Games Group, a PIF subsidiary, indicated in an interview with Kyodo News that the fund is open to boosting its stake in companies like Nintendo, pending agreement from the companies themselves. PIF currently holds an 8.6% stake in Nintendo, making it one of the company’s largest shareholders.

The Saudi government has been heavily investing in the gaming sector, aiming to diversify its economy away from oil. Through PIF, Saudi Arabia has committed $38 billion to transform the kingdom into a major player in the video game industry, including investments in Japanese and Korean content providers. The PIF has also made significant investments in other gaming giants such as Tencent, Activision Blizzard, and Nexon.

This news sent Nintendo’s stock up 4.4% during Monday trading, outpacing the broader market. The report also led to gains for other companies in which PIF holds stakes, such as Nexon Co., which saw shares rise by 3%.

With input from CNBC, Market Watch, and Bloomberg.