Lars Wingefors, the boss of Embracer Group, has issued a lengthy statement discussing the recent £840m investment in the company by the Savvy Gaming Group, a subsidiary of Saudi Araba’s controversial Public Investment Fund.
Founded in Sweden, Embracer is the enormous umbrella corporation which owns more than 100 studios including Borderlands developer Gearbox, publishing groups such as THQ Nordic, Koch Media and Saber Interactive, and franchises such as Tomb Raider and Deus Ex.
The Savvy Gaming Group (SGG), meanwhile, is a gaming-focused arm of the Saudi investment fund set up by the hugely controversial Prince Mohammed bin Salman, in a bid to diversify and modernise the country’s foreign incomes.
Its investment in Embracer, first reported last week, amounts to 8.1 percent of the company’s overall shares, with 5.4 percent of voting rights.
Saudi Arabia now owns similar chunks of various other game developers, including EA, Activision Blizzard, Take-Two Interactive, Capcom, and Nintendo, but each time it happens, eyebrows are again raised.
“Since our announcement two days ago regarding the investment by Savvy Gaming Group (SGG) I have received many questions,” Wingefors’ lengthy statement begins. “I would like to share some background and to provide you with a rationale for our decision. I understand and respect that there are different views on this topic. I don’t claim to have the right answers, but I want it to be clear that this decision was not taken lightly. I appreciate this opportunity to explain my view on why this investment is an important step for Embracer on our continued journey as a company.